Facts of the Case

The petitioner, M/s. Mahadev Cotton Pressing, a partnership firm, had its GST registration cancelled by an order dated 16.08.2021. Under Section 107 of the Central Goods and Service Tax Act, 2017, an appeal against such cancellation had to be filed within three months, extendable by a further 30 days, giving the petitioner time up to 15.12.2021. The appeal was, however, filed only on 03.01.2022 and was dismissed as time-barred by the appellate authority on 05.01.2022. Subsequently, on 10.01.2022, the Supreme Court passed a general order in its suo motu proceedings on extension of limitation (Miscellaneous Application No. 21/2022 in MA 665/2021 in SMW(C) No. 3/2020), directing that where limitation would have expired between 15.03.2020 and 28.02.2022, all affected persons would have a fresh limitation period of 90 days from 01.03.2022 (or the longer balance period, if greater). Relying on this order, the petitioner applied to the appellate authority for revival of its appeal, but received no response, leading to the present writ petition.

Issues Involved

  1. Whether an appeal against cancellation of GST registration under Section 107 of the CGST Act, filed beyond the normal limitation period, is saved by the Supreme Court's suo motu limitation-extension order dated 10.01.2022.
  2. Whether the appellate authority was obliged to decide the appeal on merits after condoning the delay in light of that Supreme Court order.

Petitioner's Arguments

  • The delay in filing the appeal was bona fide, and the respondents ought to have condoned the delay and decided the appeal against cancellation of GST registration on merits.
  • Relied on a co-ordinate bench decision of the same High Court dated 10.11.2022 in D.B. Civil Writ Petition No. 16269/2022, Prakash Purohit v. The Commissioner, Central Goods and Service Tax & Ors.

Respondent's Arguments

  • Filed a reply opposing the submissions made on behalf of the petitioner, though the specific grounds of opposition are not elaborated in the final order.

Court Order/Findings

  • Applying the Supreme Court's order dated 10.01.2022 in Miscellaneous Application No. 21/2022 in MA 665/2021 in SMW(C) No. 3/2020, the Court held that since the petitioner's limitation to file the appeal fell within the COVID-extension window, the appellate authority was required to decide the appeal on merits while condoning the delay.
  • The appellate order dated 05.01.2022 dismissing the appeal as time-barred was set aside.
  • The appellate authority was directed to decide the appeal against cancellation of GST registration on merits, expeditiously, treating it as filed within limitation.

Important Clarification

  • The Supreme Court's suo motu extension of limitation on account of COVID-19 (orders passed in Suo Motu Writ Petition (C) No. 3/2020) applies to appeals against cancellation of GST registration filed under Section 107 of the CGST Act where the limitation period would otherwise have expired between 15.03.2020 and 28.02.2022, entitling such appellants to a fresh limitation period of 90 days from 01.03.2022.
  • Appellate authorities are obliged to condone delay and decide such appeals on merits, rather than summarily dismissing them as time-barred, where the Supreme Court's extended limitation applies to the facts.

Sections Involved

  • Section 29, Central Goods and Services Tax Act, 2017 – Cancellation of registration.
  • Section 107, Central Goods and Services Tax Act, 2017 – Appeal to Appellate Authority, including limitation and condonation of delay.

Decision – In Favour of

The decision is in favour of the Assessee. The writ petition was allowed, the appellate order dismissing the appeal as time-barred was set aside, and the appellate authority was directed to decide the appeal against cancellation of GST registration on merits.

Related Case Laws

No directly on-point case notes are currently published on this site.

Case Details

  • Court: High Court of Judicature for Rajasthan at Jodhpur
  • Case No.: D.B. Civil Writ Petition No. 2384/2022
  • CNR: Not available on record
  • Coram: Hon'ble Mr Justice Vijay Bishnoi and Hon'ble Mr Justice Munnuri Laxman
  • Decision Date: 29.11.2023
  • Disposal Nature: Allowed - appellate order dismissing appeal as time-barred set aside; appellate authority directed to decide GST registration-cancellation appeal on merits

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