JMD Enterprises through its proprietor, Shri Sanjay Yadav Vs Sales Tax Officer (Delhi High Court)

The Delhi High Court, in the case of M/s. JMD Enterprises v. Sales Tax Officer, AVATO, has directed the Sales Tax Officer to decide an application for the revocation of GST registration cancellation within one month. The petitioner, JMD Enterprises, had its GST registration retrospectively cancelled from July 2, 2017, based on alleged suspicious transactions with another entity, M/s Vardhman Trading Company. Following this cancellation order, the petitioner filed a revocation application and sought its swift resolution by the court. The High Court noted that the respondent did not object to the request for early disposal of the revocation application. Consequently, the court mandated that the application for revocation must be processed and a decision communicated to the petitioner within one month from the date of the High Court’s order. This directive aligns with Section 30(2) of the Central Goods and Services Tax (CGST) Act, which stipulates that a proper officer may revoke or reject an application for cancellation of registration within a prescribed period. Furthermore, Rule 23(2)(a) of the CGST Rules specifies a thirty-day period for the proper officer to revoke the cancellation if sufficient grounds are found. The court’s order reinforces the expectation of timely action by tax authorities in such matters, leaving all other rights and contentions of the parties open for future consideration.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:Relevant Provisions:Section 30(2) of the CGST ActSection 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.”