M/S Sagar Engineering vs. Union Of INDIA

Held

The Court held that Notification No. 03/2023-Central Tax dated 31.03.2023 opens a window for aggrieved persons, including those whose appeals against the order of cancellation of registration or rejection of revocation applications have been dismissed on grounds of delay under Section 107 of the CGST Act, to apply for revocation of cancellation of registration up to 30.06.2023. The Court observed that the petitioner falls within the class of registered persons covered by this notification. Therefore, the petitioner is at liberty to approach the Appellate Authority under the special procedure notified by the said notification. The Court clarified that all deposits made by the petitioner and the provisional restoration of their registration shall remain subject to the outcome of the application to be preferred pursuant to this order. No comment was made on the merits of the claim for restoration of registration, leaving it to the Competent Authority to decide in accordance with law. The petition was disposed of with these observations.

Facts

The petitioner, M/s Sagar Engineering, filed a writ petition challenging an order dated 22.03.2021 by the Appellate Authority, which rejected their appeal against the refusal to revoke the cancellation of their GST registration. The petitioner had been unable to conduct business due to the cancellation. The High Court, by an interim order dated 23.07.2021, directed the provisional restoration of the petitioner's GST registration upon deposit of all dues, including interest and penalty, subject to the outcome of the writ petition. The petitioner complied with this order and their registration was provisionally restored on 28.07.2021. Subsequently, the Revenue filed a reply, acknowledging the issuance of Notification No. 03/2023-Central Tax dated 31.03.2023.

Key Issues

1. Whether the petitioner, whose appeal against the rejection of revocation of GST registration was dismissed on grounds of delay, is entitled to avail the benefit of the special procedure notified by Notification No. 03/2023-Central Tax dated 31.03.2023? The petitioner contended that the said notification provides a window for applying for revocation of cancellation of registration up to 30.06.2023, and importantly, it includes persons whose appeals under Section 107 of the CGST Act have been rejected on the ground of failure to adhere to the time limit specified under Section 30 of the Act. The Revenue did not dispute the applicability of this notification.