This appeal has been filed under Section 107 of the Central Goods and Service Tax Act, 2017 by Anupama Rana, (The Design Studio), T-17/C, Shanti Path Colony, Nehru Nagar, Jaipur-302016 (hereinafter also referred to as “the appellant”) against the Order No.ZA9904200058531 dated 20.04.2020 (hereinafter referred to as “the impugned order”) passed by the Assistant Commissioner, Central Goods and Service Tax Division-B, Jaipur (hereinafter  referred of as “the adjudicating authority”).

Brief facts of the case:

2.  Brief facts of the case are that the adjudicating authority has cancelled the GSTIN of Anupama Rana, (The Design Studio), T-17/C, Shanti Path Colony, Nehru Nagar, Jaipur-302016 having GSTIN 08APMPR0292J2ZD due to non filing of six or more monthly GSTR 3B returns. The application for revocation of cancellation of registration was also rejected due to non submission of reply to the show cause notice dated 20.02.2020 within the time specified therein.

3.  Being aggrieved with the impugned order, the appellant has filed the appeal against the said order stating that all the pending returns have already been filed and no return is pending on the taxpayer’s part.

4.  The appellant vide their e mail dated 22.07.2020 has requested to this  office for fast process of appeal and on line hearing of the case through video conferencing due to Covid-19. Accordingly, vide this office letter C.No. APPL/JPR/CGST/JPR/38/VII/2020/1369-70 dated 24.07.2020 the date of personal hearing through video conference in the case has been fixed on 30.07.2020 at 12.30 PM.

5.  Personal Hearing in the matter was held on 30.07.2017 at 1230 Hrs, wherein, Shri Basant Shekhawat, Manager on behalf of the appellant, attended the personal hearing through video conference and explained the case in detail. He reiterated the submission already made in their grounds of appeal and further requested to decide the case at the earliest.

6.  I have carefully gone through the case records and submission made by the appellant. I find that the adjudicating authority has rejected/cancelled the registration of the appellant due to non filing of GSTR 3B returns and has also rejected the application for revocation of cancellation of registration for not submission of reply to the show cause notice dated 20.02.2020 within the specified period. The appellant has submitted that due to financial hardship they were unable to file the said returns and being a new regime they were not aware of the procedure of online filing on GST portal and rejection of the application only on the ground that reply was not filed on the GST portal goes against the principles of natural justice.

7. In the above context rule 23 of the CGST Rules, 2017 regarding revocation of cancellation of registration provides as under:-

(1) A registered person, whose registration is cancelled by the proper officer on his own motion, may submit an application for revocation of cancellation of registration, in FORM GST REG-21*, to such proper officer, within a period of thirty days from the date of the service of the order of cancellation of registration at the common portal, either directly or through a Facilitation Centre notified by the Commissioner :

Provided that no application for revocation shall be filed, if the registration has been cancelled for the failure of the registered person to furnish returns, unless such returns are furnished and any amount due as tax, in terms of such returns, has been paid along with any amount payable towards interest, penalty and late fee in respect of the said returns .

[Provided further that all returns due for the period from the date of the order of cancellation of registration till the date of the order of revocation of cancellation of registration shall be furnished by the said person within a period of thirty days from the date of order of revocation of cancellation of registration :

Provided also that where the registration has been cancelled with retrospective effect, the registered person shall furnish all returns relating to period from the effective date of cancellation of registration till the date of order of revocation of cancellation of registration within a period of thirty days from the date of order of revocation of cancellation of registration.]

(2) (a) Where the proper officer is satisfied, for reasons to be recorded in writing, that there are sufficient grounds for revocation of cancellation of registration, he shall revoke the cancellation of registration by an order in FORM GST REG-22* within a period of thirty days from the date of the receipt of the application and communicate the same to the applicant.

(b) The proper officer may, for reasons to be recorded in writing, under circumstances other than those specified in clause (a), by an order in FORM GST REG-05*, reject the application for revocation of cancellation of registration and communicate the same to the applicant. 

(3) The proper officer shall, before passing the order referred to in clause (b) of sub-rule (2), issue a notice in FORM GST REG-23* requiring the applicant  to show cause as to why the application submitted for revocation under sub-rule (1) should not be rejected and the applicant shall furnish the reply within a period of seven working days from the date of the service of the notice in FORM GST REG-24*.

(4) Upon receipt of the information or clarification in FORM GST REG-24* , the proper officer shall proceed to dispose of the application in the manner specified in sub-rule (2) within a period of thirty days from the date of the receipt of such information or clarification from the applicant.

8.  Further, I find that Central Board of Indirect Taxes & Customs, New Delhi has clarified the issue vide circular No.99/18/2019-GST dated 23.04.2019. Para 3 of said circular read as under:

3. First proviso to sub-rule (1) of rule 23 of the said Rules provides that if the registration has been cancelled on account of failure of the registered person to furnish returns, no application for revocation of cancellation of registration shall be filed, unless such returns are furnished and any amount in terms of such returns is paid. Thus, where the registration has been cancelled with effect from the date of order of cancellation of registration, all returns due till the date of such cancellation are required to be furnished before the application for revocation can be filed. Further, in such cases, in terms of the second proviso to sub-rule (1) of rule 23 of the said Rules, all returns required to be furnished in respect of the period from the date of order of cancellation till the date of order of revocation of cancellation of registration have to be furnished within a period of thirty days from the date of the order of revocation.

9.  In view of the above legal provision, the appellant is required to follow the procedure as prescribed under rule 23 of the CGST Rules,2017 as clarified vide circular No. No.99/18/2019-GST dated 23.04.2019 and to approach the adjudicating authority for further necessary action according to said rules/circular.

10.  The appeal is disposed off in above manner.