2022 (3) TMI 740 - HC - GST

Cancellation of registration of petitioner - non-filing of return for consecutively six months - time limitation - appealable order or not as per Section 107 of GST Act - appeal rejected on the sole ground that the appeal could not be entertained, because it is filed beyond the limitation period of three months and the condonable period of one month - HELD THAT - The order passed by the Appellate Authority only on the ground of delay may not be justifiable in view of the extraordinary situation, where Covid 19 situation had intervened. The impugned orders are set aside and the matter is remitted back to the respondents, where, the appeal shall be entertained and considered on merits and it may be decided at the earliest, taking into account the conditions imposed or observations made by the learned Judge - petition allowed by way of remand.

Summary

Issues:
1. Appeal against cancellation of GST registration due to non-filing of returns for six months.
2. Rejection of appeal by the Appellate Authority based on delay beyond the limitation period.
3. Interpretation of the impact of Covid-19 situation on the filing of appeals under Section 107 of the Act.
4. Comparison of the present case with the judgment in Tvl.Suguna Cutpiece Center case.
5. Justifiability of rejecting the appeal solely on the ground of delay during the Covid-19 situation.

Analysis:
1. The petitioner, a GST-registered dealer, had their registration cancelled for not filing returns for six months. The appeal filed under Section 107 was rejected due to exceeding the limitation period.
2. The counsel for the petitioner argued that the Covid-19 situation's impact on appeal filings was addressed in the Tvl.Suguna Cutpiece Center case judgment by a learned Judge of the High Court.
3. The Tvl.Suguna Cutpiece Center case judgment outlined conditions for restoring canceled registrations, emphasizing timely return filing, tax payment, and restrictions on Input Tax Credit utilization.
4. Relying on the Tvl.Suguna Cutpiece Center judgment, the petitioner sought relief against the appeal rejection based solely on delay.
5. The Senior Standing Counsel for the respondents acknowledged the relevance of the Tvl.Suguna Cutpiece Center judgment in disposing of the present writ petition.
6. The High Court, after considering submissions from both sides and the Tvl.Suguna Cutpiece Center judgment, found the appeal rejection solely on delay unjustifiable during the Covid-19 situation.
7. Consequently, the High Court set aside the impugned orders, remitting the matter back to the respondents for entertaining and deciding the appeal on merits, considering the conditions specified in the Tvl.Suguna Cutpiece Center judgment.
8. The High Court disposed of the writ petition with the above orders, emphasizing the need to consider the extraordinary circumstances of the Covid-19 situation in appeal proceedings.