A significant ruling from the Delhi High Court mandates that applications for revocation of GST Registration cancellation must be decided within one month. This directive came in the case of M/s. JMD Enterprises v. Sales Tax Officer, AVATO, decided on May 15, 2025.
Case Details
The petitioner, M/s. JMD Enterprises, challenged an order from April 29, 2024, which retrospectively canceled their GST Registration effective July 2, 2017. This cancellation was based on alleged suspicious transactions with M/s Vardhman Trading Company. JMD Enterprises subsequently filed an application to revoke the cancellation and sought its speedy resolution.
The High Court’s Decision
The Hon’ble Delhi High Court observed that the Respondent had no objection to an early disposal of the application. Consequently, the Court ruled that the revocation application must be decided within one month from the date of its order, and the decision communicated to the Petitioner promptly.
Legal Basis
This ruling aligns with Section 30(2) of the CGST Act, which outlines the procedure for revoking registration cancellation, and Rule 23(2) of the CGST Rules. Rule 23(2) specifically states that if the proper officer is satisfied, they shall revoke the cancellation within 30 days of receiving the application.
This judgment provides crucial relief to businesses seeking a swift resolution to their GST registration issues, reinforcing the need for timely administrative action.