2022 (6) TMI 762 - HC - GST

Maintainability of appeal - time limitation - Cancellation of GST registration of petitioner - Section 107 (1) of GST Act - HELD THAT - As per section 107 (1), the appeal could be preferred within a period of three months. The petitioner has contended that no notice was issued to him by the Deputy Commissioner Sales Tax. In any case no such notice was served upon him and he acquired knowledge of the fact of passing of the order from other source hence could not prefer the appeal within time - The period of limitation for preferring the appeal as per Section 107 (1) is three months from the date on which the decision or order is communicated such person. The appeal preferred by the petitioner has been dismissed by merely observing that the same has been preferred after a period of three months from the date of passing of the order which reason cannot be sustained since appeal could be preferred within three months from the date on which the order was communicated. There is no material available on record to establish as to when the order passed by the Deputy Commissioner Sales Tax was communicated to the petitioner. That was the crucial fact for being ascertained as it would be that date from which the period of limitation for preferring the appeal would have commend. The matter is remanded back to the appellate authority Joint Commissioner of Sales Tax, Indore for reconsideration of the matter and decision afresh - Petition allowed by way of remand.

Summary

Issues:
1. Appeal against cancellation of Goods and Services Tax registration dismissed as time-barred.
2. Interpretation of Section 107 of the Act regarding the time limit for filing an appeal.
3. Lack of evidence regarding the communication date of the order to the petitioner.

Analysis:
1. The petitioner filed a petition under Article 226 challenging the dismissal of their appeal against the cancellation of their Goods and Services Tax registration as time-barred by the appellate authority and Joint Commissioner of Sales Tax, Indore.

2. The Deputy Commissioner of Sales Tax had passed an order canceling the petitioner's registration under the G.S.T. Act on 19.12.2018. The petitioner appealed this decision on 11.08.2021, which was dismissed by the appellate authority citing Section 107 (1) of the Act, which allows appeals within three months, extendable by one month under Section 107(4). The appeal was filed after two years and seven months, deemed time-barred.

3. The petitioner argued that they were not served a notice by the Deputy Commissioner Sales Tax and only learned about the order from other sources, causing a delay in filing the appeal. The key issue was the date of communication of the order to the petitioner, as the limitation period starts from this date according to Section 107(1). The lack of evidence on record regarding the communication date led to the court setting aside the impugned order and remanding the matter back to the appellate authority for reconsideration.

4. The High Court found that the crucial fact of when the order was communicated to the petitioner was not considered by the appellate authority. Therefore, the court allowed the petition, set aside the order, and directed the appellate authority to reconsider the matter and make a fresh decision in accordance with the law and observations made in the judgment.

5. In conclusion, the petition was allowed, and the matter was disposed of with a direction to the appellate authority to reexamine the case considering the communication date of the order to the petitioner.