Facts of the Case

Sri Kalyani Granites, a proprietorship concern situated at the Industrial Estate, Kurnool Road, Ongole, represented by its proprietor Kishore Pallapolu, filed Writ Petition No.32771 of 2023 before the High Court of Andhra Pradesh at Amaravati, seeking a mandamus directing the Additional Commissioner (Appeals) to dispose of its pending statutory appeal within 90 days, together with an interlocutory application (I.A. No.1 of 2023) for an interim direction to the same effect pending disposal of the writ petition. The petitioner's GST registration had been cancelled by order dated 09.06.2023 (Reference No. ZA3706230150991), and its application for revocation of that cancellation was rejected on 17.06.2023, following a show-cause notice for rejection of the revocation application dated 16.06.2023 in Form GST REG-23. The petitioner contended that the cancellation and the subsequent proceedings were violative of Articles 14, 300A and 19(1)(g) of the Constitution of India, since continued cancellation of registration effectively stalled its ability to carry on business. Aggrieved by the cancellation and rejection, the petitioner filed a statutory appeal under Section 107 of the Goods and Services Tax Act on 26.07.2023, which remained pending before the Additional Commissioner (Appeals) at the time the writ petition came up for hearing. The matter was heard by a Division Bench comprising Hon'ble Justices Ravi Nath Tilhari and A.V. Ravindra Babu, with Sri P. Nagendra Reddy appearing for the petitioner and the Government Pleader for Commercial Tax appearing for the State respondents, and judgment was delivered on 21.12.2023.

Issues Involved

  1. Whether the petitioner was entitled to a mandamus directing the appellate authority to decide the pending appeal against cancellation of GST registration within 90 days.
  2. Whether the statutory period of one year prescribed under Section 107(13) of the GST Act for deciding an appeal had expired so as to warrant judicial intervention.

Petitioner's Arguments

  • The cancellation of GST registration and the rejection of the revocation application, both premised on Form GST REG-23, were violative of Articles 14, 300A and 19(g) of the Constitution of India.
  • The pending appeal before the Additional Commissioner (Appeals) should be directed to be decided within 90 days, given the prejudice caused by continued cancellation of registration.

Respondent's Arguments

  • The Government Pleader for Commercial Tax appeared for the State respondents; the order does not record any specific contested submissions beyond opposing the petition generally.

Court Order/Findings

  • The Court noted that Section 107(13) of the GST Act statutorily mandates the Appellate Authority to hear and decide every appeal within one year from the date of filing, where possible, excluding any period during which the order is stayed by a court or tribunal.
  • Since the appeal was filed only on 26.07.2023, the one-year statutory period had not yet expired, and no special circumstance was shown to justify an earlier, 90-day time-bound direction; the Court therefore found no merit in the prayer at that stage.
  • The writ petition was dismissed without costs, but the Court clarified that this dismissal would not come in the way of the appellate authority deciding the appeal within the statutory period, or expeditiously if possible.

Important Clarification

Section 107(13) of the GST Act gives the Appellate Authority up to one year from the date of filing to decide an appeal, subject to exclusion of any stay period; a writ court will ordinarily decline to compress this statutory timeline to a shorter period such as 90 days unless special circumstances are shown, even in registration-cancellation appeals.

Sections Involved

  • Section 107 of the Central Goods and Services Tax Act, 2017 – appeals to the Appellate Authority.
  • Section 107(13) of the Central Goods and Services Tax Act, 2017 – statutory one-year period for disposal of appeals.
  • Form GST REG-23 under the CGST Rules, 2017 – show cause notice for rejection of application for revocation of cancellation of registration.

Decision – In Favour of

The decision favours the Department on the narrow relief sought. The Court declined to fast-track the appeal to 90 days, though it left open the appellate authority's obligation to decide within the statutory one-year period or expeditiously.

Related Case Laws

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

Case Details

  • Court: High Court of Andhra Pradesh, Amaravati
  • Case No.: Writ Petition No.32771 of 2023
  • CNR: Not available on record
  • Coram: Hon'ble Justices Ravi Nath Tilhari and A.V. Ravindra Babu
  • Decision Date: 21 December 2023
  • Disposal Nature: Writ petition dismissed

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