M/s 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.
