Facts of the Case

The petitioner, M/s Creative Advertiser Jakkanpur, Patna, challenged the order dated 06.08.2022 passed by the Additional Commissioner of State Tax (Appeals), whereby the GST appeal was dismissed at the admission stage on the ground of delay. The petitioner also challenged the earlier order dated 02.12.2021, by which the GST registration had been cancelled without granting a proper opportunity to submit a reply or to be heard.

The petitioner further sought a direction for revocation of the cancellation of GST registration.

Issues Involved

  1. Whether the dismissal of the appeal solely on the ground of delay deprived the petitioner of an effective remedy.
  2. Whether the cancellation of GST registration without adequate opportunity of hearing violated the principles of natural justice.
  3. Whether the petitioner could invoke Section 30 of the Bihar GST Act, 2017 for revocation of cancellation of registration despite the dismissal of the appeal.
  4. Whether limitation should prevent consideration of the revocation application in the peculiar facts of the case.

Petitioner’s Arguments

  • The appellate authority wrongly dismissed the appeal merely on the ground of delay.
  • The GST registration was cancelled without providing sufficient opportunity to file a reply or to present the case.
  • The cancellation order was passed in violation of the principles of natural justice.
  • The petitioner sought quashing of both the cancellation order and the appellate order and requested restoration of GST registration.

Respondent’s Arguments

The State submitted that if the petitioner availed the remedy available under Section 30 of the Bihar Goods and Services Tax Act, 2017, the application for revocation of cancellation of registration would be considered independently in accordance with law, irrespective of the earlier orders passed by the authorities.

Court Order / Findings

The Patna High Court recorded the statement of the State that the petitioner's application under Section 30 of the Bihar GST Act, 2017 would be considered independently on its own merits.

The Court noted the petitioner's undertaking to file such an application within two weeks and directed the competent authority to decide the application within four weeks thereafter in accordance with law.

The Court further directed that the issue of limitation should not obstruct consideration of the application because the petitioner had been diligently pursuing remedies before different forums.

The Court clarified that it had not expressed any opinion on the merits of the dispute and that all legal and factual issues remained open for consideration by the competent authority.

Accordingly, the writ petition was disposed of with the above directions.

Important Clarification

  • An assessee whose GST appeal has been dismissed on the ground of limitation may still avail the statutory remedy available under Section 30 of the Bihar GST Act, 2017, subject to the applicable legal provisions.
  • The High Court directed that the competent authority should examine the revocation application on its merits.
  • The Court specifically observed that limitation should not become a hurdle where the petitioner had been bona fide pursuing legal remedies before different forums.
  • The judgment does not restore the GST registration directly but ensures that the statutory application is decided expeditiously and fairly

Sections Involved

  • Section 30 of the Bihar Goods and Services Tax Act, 2017 – Revocation of Cancellation of Registration
  • Provisions relating to Cancellation of GST Registration
  • Provisions relating to Appeal against Cancellation of Registration
  • Article 226 of the Constitution of India (Writ Jurisdiction)

Link to Download the Order

https://www.mytaxexpert.co.in/uploads/1785403113_2378compressed.pdf

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