Application for Revocation of GST Registration Cancellation to Be Decided Within One Month
By Author | June 17, 2025 | Delhi High Court, GST Judgements
Court Relief: Direction for Timely Disposal
The Hon’ble Delhi High Court, in the case M/s. JMD Enterprises v. Sales Tax Officer, AVATO [W.P.(C) No. 6502/2025, dated May 15, 2025], granted relief to the assessee. The Court directed tax authorities to decide the revocation application for cancelled GST registration within one month from the date of the Court’s order.
Background of the Case
M/s. JMD Enterprises (“the Petitioner”) filed a writ petition against the cancellation of its GST registration. The cancellation order, dated April 29, 2024, was applied retrospectively from July 2, 2017. Authorities cited a suspicious transaction with M/s. Vardhman Trading Company as the basis for cancellation.
The Petitioner had already filed a revocation application and requested its speedy disposal before the Court.
Legal Issue
Does the application for revocation of retrospective GST registration cancellation require a time-bound decision?
Court’s Observations and Verdict
- The Respondent raised no objection to the plea for early disposal.
- The Court directed the officer to decide the revocation application within one month from the date of the order.
- Authorities must communicate the decision to the Petitioner without undue delay.
Legal Provisions Referenced
🔹 Section 30(2) of the CGST Act
“The proper officer may revoke or reject the application for cancellation. However, rejection shall only occur after providing the applicant an opportunity to be heard.”
🔹 Rule 23(2) of the CGST Rules
Clause (a): If the officer finds valid grounds, they must pass an order in FORM GST REG-22 within 30 days of receiving the application.
Clause (b): If not satisfied, the officer must reject the application via FORM GST REG-05 and provide reasons in writing.
Key Takeaway
Taxpayers facing retrospective GST registration cancellations can now expect faster redressal. The Delhi High Court has emphasized that revocation applications should not be kept pending indefinitely.
