Section 25 of the CGST Act, 2017— Registration – The appellant challenged the judgment passed by the Writ Court. The petitioner had challenged the License dated 15th May, 2019 issued under the Food Safety and Standard Act, 2006 in favour of respondent No.5; Order dated 16th April, 2021 issued by respondent No.2, whereby GST registration issued in favour of the petitioner has been cancelled and a fresh registration has been issued in favour of respondent No.5. The petitioner and respondent No.5 jointly purchased a building and further constructed restaurant. The petitioner alleged that respondent No.5 in connivance with the officials of Food Safety Department succeeded in getting the petitioner’s license transferred in his own name. The court observed that the proper course was to leave the concerned authority free to take a decision as to who, out of the two, fulfils the criteria for holding a license. The Writ Court has erred in placing a restraint on the powers of the competent authority to grant a license in favour of the party fulfilling the criteria laid down under the relevant provisions of the law. The registration aspect of the business concern would be decided once the application of the appellant is decided by the competent authority.

Held that:- The Hon’ble High Court set aside the paragraph nos. 27 and 28 of the impugned judgment and held that appellant as also the respondent no. 5 shall be at liberty to approach the concerned authority for issuance/renewal of license. The concerned authority shall consider the individual claims in light of the relevant provisions of the law and decide the same within a period of one month. The application pending Appellate Authority shall also be considered and decided after affording an opportunity of hearing to the respondent no. 5 also. Till the time the license is granted in favour of the rightful party by the competent authority, the Restaurant shall not be operated/ run by any of the party.