2021 (9) TMI 109 - Commissioner - GST

Condonation of delay in filing appeal - delay on the ground that accountant of the assessee who looks after the matters of appellant was not well - rejection of application for cancellation of registration - whether the appeal has been filed within the prescribed time- limit? - HELD THAT - In the instant case the appeal has been filed by delay from the normal period prescribed under Section 107(1) of the CGST Act, 2017. Though the delay in filing the appeal is condonable only for a further period of one month provided that the appellant was prevented by sufficient cause from presenting the appeal is shown and the delay of more than one month is not condonable under the provisions of sub section (4) of Section 107 of the Central Goods and Service Tax Act, 2017 - the delay in filing of appeal is condoned. Whether or not the appeal filed against the order of cancellation to be decided? - HELD THAT - The adjudicating authority/proper officer has rejected the application for cancellation of registration through Form GST REG-19 dated 06.22.2020 as the appellant did not file the GST returns and also not deposited Govt liabilities/dues etc. - the appellant has filed all his pending returns upto date of cancellation of registration and he has also deposited tax liabilities, late fee and interest, therefore the appellant has now been complied with the relevant provisions in the instant case - thus, the registration of appellant may be considered for revocation by the proper officer. Appeal allowed - decided in favor of appellant.

Summary

Issues:
1. Delay in filing the appeal under Section 107 of the Central Goods and Service Tax Act, 2017.
2. Revocation of cancellation of registration due to non-filing of GSTR returns.

Issue 1: Delay in filing the appeal
The appellant filed an appeal against the cancellation of GST registration due to non-filing of GSTR returns for six months. The appeal was filed 343 days after the prescribed period under Section 107(1) of the CGST Act, 2017. The appellant cited reasons for the delay, including the illness of the accountant and lack of awareness about legal provisions. The appellant referred to a Supreme Court judgment allowing a 90-day extension for cases affected by the pandemic. The Commissioner examined the delay and considered the notifications issued by CBIC, ultimately deciding to condone the delay in filing the appeal.

Issue 2: Revocation of cancellation of registration
During the personal hearing, the appellant's representative highlighted that all pending returns were filed, and tax liabilities were paid until the cancellation of registration. The appellant provided evidence of filing GSTR-3B and GSTR-1 returns, along with cash and credit ledger details. The Commissioner reviewed Rule 23 of the CGST Rules, 2017, which outlines the process for revocation of cancellation of registration. Additionally, a circular by CBIC clarified the requirement to furnish all pending returns before applying for revocation. After verifying that the appellant had complied with the necessary provisions by filing pending returns and clearing dues, the Commissioner allowed the appeal and directed the proper officer to consider the revocation application after verifying payment details and return status.

In conclusion, the Commissioner allowed the appeal, considering the delay in filing the appeal and the compliance with revocation requirements. The decision was made based on the appellant's submission of pending returns and payment of tax liabilities, late fees, and interest. The proper officer was instructed to review the revocation application post verification, ensuring all criteria were met before reinstating the appellant's registration.