Order Date – 22 February 2023

Parties: M/s Mohankar Timber Company Vs The Union of India and ors.

Facts –

• The Petitioner, M/s Mohankar Timber Company, was issued a show cause notice dated 7 January 2021 for cancellation of registration as Petitioner had not filed returns for a continuous period of six months. After considering the reply of the Petitioner, the Petitioner’s GSTIN registration was cancelled vide order dated 28 January 2021.
• The Commissioner (Appeals), rejected the appeal filed by Petitioner holding that since Petitioner did not approach the jurisdictional CGST authority for revocation of cancellation of registration under section 30 of the Act after issuance of the cancellation order as per the time lines provided under the law.

Issue –

• Whether the rejection of appeal is in order?

Order –

• The Divisional Bench of the Hon’ble High Court observed from the decisions of this court in MSK Electricals vs. The Union of India and Others, that in similar circumstances this court has granted an opportunity to the Petitioner to file an application before the authority under section 30 of the CGST Act.
• Although the authority observed that the appeal was filed within time and also went to the extent of allowing the appeal, however, instead of directing the Petitioner to file an application under section 30 it has gone ahead and rejected the appeal on the ground of maintainability.
• Therefore, the Court inclined to afford an opportunity to the Petitioner to file an application to the authority under section 30 of the CGST Act. Writ petition disposed of.