This appeal has been filed under Section 107 of the Central Goods and Services Tax Act, 2017 by Sh. Indra Singh Panwar, (M/s. Ambika Marketing Services), E-639, Janpath, Lal Kothi, Jaipur-302015 (hereinafter also referred to as “the appellant”) against the Order No. ZA080920238853A, dated 24-9-2020 (hereinafter referred to as “the impugned order”) passed by the Assistant Commissioner, Central Goods and Services Tax Division-E, Jaipur (hereinafter referred to as “the adjudicating authority / Proper Officer”).

Brief facts of the case :

2.  Brief facts of the case are that the Proper Officer has cancelled the GSTIN of Sh. Indra Singh Panwar, E-639, Janpath, Lal Kothi, Jaipur-302015 having GSTIN 08ASHPP1054EIZW due to non-filing of returns for a continuous period of six months. The application for revocation of cancellation of registration has been also rejected due to non-submission of reply to the show cause notice reference No. ZA080920019236N, dated 7-9-2020 within the time specified therein.

3.  Being aggrieved with the impugned order, the appellant has filed the appeal against the said order stating that after cancellation of GST registration we are not in position to fill the return from July, 2020 onwards and requested for revocation GST.

4.  Personal hearing in virtual mode through video conference was held on 5-1-2021. Shri Ankit Kumar Sharma, Chartered Accountant appeared for personal hearing on behalf of the appellant. He reiterated the grounds of appeal. During personal hearing he further stated that the proper officer issued the show cause notice in Form-REG-17 on 27-11-2019 for non-filing of returns from the month of July, 2019 to October, 2019 by his client. But his client did not reply of the show cause notice as he was not able to file the returns at that point of time due to financial crisis. Order for cancellation of registration in Form REG-19 was issued by the proper officer on 9th June, 2020. Thereafter, his client filed all the returns up to June, 2020 and paid tax, penalty and interest as whole. Thereafter, his client applied application for revocation of registration on 10-8-2020 and 24-82020 in Form REG-21. The proper officer issued notice to his client in Form-23 but he did not reply of the notice. The proper officer issued order of rejection of application for revocation of cancellation of registration in Form GST REG-05 on  24-9-2020. During personal hearing Sh. Ankit Kumar Sharma intimated that his client has filed all the returns and paid all the dues (tax, penalty and interest) up to June, 2020. Therefore, he requested for revocation of cancellation of registration. He has nothing more to add.

5.  I have gone through the facts of the case and the written submissions made by the appellant in their appeal memo as well as also oral submission at the time of personal hearing and accordingly I proceed for deciding the appeal.

6.  I have carefully gone through the case records and written submission made in the appeal memo as well as oral submission made at the time of personal hearing. I find that the adjudicating authority/ proper officer has rejected the application for revocation of cancellation of registration through Form GST REG-05 as appellant did not file the reply to the notice issued vide show cause notice Reference No. ZA080920019236N, dated 7-9-2020 within time specified therein.

7.  In this context, the appellant submitted that he had applied application for revocation of registration twice but the same were rejected. Further he submitted that he filed GSTR-3B up to June, 2020 and GSTR-1 up to March, 2020. Further during personal hearing representative of the appellant also intimated that his client has filed all the returns and paid all the dues i.e. tax, penalty and  interest.

8.  In this regard, the relevant provisions are as under :-

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 n 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 davs 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 CST 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.

9.  Further, I find that Central Board of Indirect Taxes & Customs, New Delhi has clarified the issue vide Circular No. 99/18/2019-GST, dated 23-4-2019. Para 3 of said circular read as under :

“3. First proviso to sub-rule (1) of the said Rules provides 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.”

10.  In view of the submission of the appellant, I find that the appellant has now been complied with the above said provisions, therefore, I am of the opinion that the registration of appellant may be considered for revocation by the proper officer. Accordingly, I order to the appellant to file the revocation application in the proscribed form through common portal. Further, I order to the proper officer to consider the revocation application of the appellant subject to the verification of payment particulars, filing of returns and compliance of the provisions of CGST Act and rules made thereunder.

11.  Accordingly, the appeal is disposed of in above manner.