The Hon’ble Delhi High Court in the case of M/s. JMD Enterprises v. Sales Tax Officer, AVATO [W.P.(C) No. 6502/2025 dated May 15, 2025] granted the relief to the assessee by directing that the application for revocation of GST Registration cancellation be disposed of within one month from the date of order passed by the Hon’ble High Court.
Facts:
M/s. JMD Enterprises (“the Petitioner”) has filed writ petition against order dated April 29, 2024, whereby the GST Registration of the Petitioner has retrospectively been cancelled with effect from July 2, 2017.
The Impugned Order has been passed for cancellation of GST Registration, based on suspicious transaction with one M/s Vardhman Trading Company.
Also, the Petitioner had subsequently filed revocation application against the Impugned Order passed cancelling GST registration. The Petitioner has also prayed for expeditious disposal of aforesaid application filed.
Issue:
Whether the revocation application filed against retrospective GST registration cancellation must be disposed of within a stipulated time?
Held:
The Hon’ble Delhi High Court in W.P.(C) 6502/2025 held as under:
- Noted that, there has been no objection from the Respondent to the prayer for early disposal.
- Held that, the revocation application filed must be decided within one month from the date of the order and the decision must be communicated to the Petitioner.
Relevant Provisions:
Section 30(2) of the CGST Act
Section 30: Revocation of cancellation of registration
(2) The proper officer may, in such manner and within such period as may be prescribed, by order, either revoke cancellation of the registration or reject the application:
Provided that the application for revocation of cancellation of registration shall not be rejected unless the applicant has been given an opportunity of being heard.
Provided further that such revocation of cancellation of registration shall be subject to such conditions and restrictions, as may be prescribed.
Rule 23(2) of the CGST Rules:
“Rule 23: Revocation of cancellation of registration:
(2) (a) Where the proper officer is satisfied, for reasons to be recorded in writing, that there are sufficient grounds for revocation of cancellation of registration, he shall revoke the cancellation of registration by an order in FORM GST REG-22 within a period of thirty days from the date of the receipt of the application and communicate the same to the applicant.
(b) The proper officer may, for reasons to be recorded in writing, under circumstances other than those specified in clause (a), by an order in FORM GST REG-05, reject the application for revocation of cancellation of registration and communicate the same to the applicant.”
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