Facts of the Case

The petitioner, M/S Brijesh Kumar, through its proprietor Mr. Brijesh Kumar, challenged an order dated 08.02.2021 by which its GST registration was cancelled. The petitioner had a statutory remedy of appeal under Section 107 of the U.P. Goods and Services Tax Act, 2017, but by the time the writ petition was filed the limitation period for filing such an appeal had already lapsed. Rather than approach the appellate authority with a time-barred appeal, the petitioner moved the Allahabad High Court seeking quashing of the cancellation order, and the matter was heard by Hon'ble Abdul Moin, J., with the consent of counsel for the contesting parties for final disposal.

Issues Involved

  1. Whether a writ petition challenging cancellation of GST registration is maintainable when the statutory appellate remedy under Section 107 of the UPGST Act, 2017 exists but limitation has expired.
  2. Whether the Supreme Court's order extending limitation on account of the COVID-19 pandemic can be invoked to permit a belated appeal against the cancellation order.

Petitioner's Arguments

  • An appellate remedy under Section 107 of the UPGST Act, 2017 exists, but the statutory time period for filing the appeal had already lapsed, making direct recourse to the writ court necessary.
  • Placed reliance on the Supreme Court's order in Suo Motu Writ Petition (C) No. 3 of 2020, which extended limitation periods on account of the COVID-19 pandemic, and prayed that the authorities condone the delay in light of that order.

Respondent's Arguments

  • The petitioner had an appellate remedy against the cancellation order but failed to avail it within the statutory time period prescribed under the Act, 2017.
  • Since no appeal was filed within limitation, the present writ petition was not maintainable.

Court Order/Findings

  • The Court noted that the petitioner had a remedy of appeal against the impugned order dated 08.02.2021 but could not file it within the statutory time period, and that the delay was sought to be explained on the ground of the COVID-19 pandemic.
  • Considering the Supreme Court's order in Suo Motu Writ Petition (C) No. 3 of 2020, and the fact that an appellate remedy was available, the Court did not examine the correctness of the cancellation order itself.
  • The writ petition was disposed of, leaving it open to the petitioner to file an appeal within two weeks, with the appellate authority directed to consider such appeal on merits if filed in accordance with the rules.

Important Clarification

  • Where delay in filing a statutory GST appeal falls within the period covered by the Supreme Court's COVID-19 limitation-extension order, a writ court may permit the appeal to be filed belatedly rather than adjudicating the challenge to the original order itself in writ jurisdiction.
  • Once such a belated appeal is filed within the extended time granted by the writ court, the appellate authority is obliged to entertain and decide it on merits rather than rejecting it as time-barred.

Sections Involved

  • Section 107, U.P. Goods and Services Tax Act, 2017 — provides for filing an appeal against an adverse order before the appellate authority within a prescribed period of limitation.
  • Registration cancellation provisions under the U.P. Goods and Services Tax Act, 2017 — governed the original order dated 08.02.2021 impugned in this petition.

Decision – In Favour of

The writ petition was disposed of without any finding on the merits of the registration cancellation. The Court's relief was limited and procedural: it granted the petitioner liberty to file an appeal within two weeks, directing the appellate authority to decide it on merits if filed. This is a partial accommodation in favour of the Assessee — allowing a belated appeal in view of the COVID-19 limitation extension — rather than a substantive ruling quashing the cancellation order; the correctness of the cancellation itself remains open before the appellate authority.

Related Case Laws

No related case laws are available on this site at present.

Case Details

  • Court: Allahabad High Court (Court No. 21)
  • Case No.: WRIT TAX No. 74 of 2022
  • Coram: Hon'ble Abdul Moin, J.
  • Order Date: 18.04.2022

Link to Download the Order

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