2022 (7) TMI 186 - HC - GST

Maintainability of appeal - appeal filed by the petitioner dismissed on the ground that the appeal was filed beyond the extended period of limitation under Section 107(1) of the Central Goods and Services Tax Act, 2017 - Cancellation of registration of petitioner - non-filing of returns for six months - HELD THAT - The issue raised in this writ petition is covered by a decision of this Court in M/S. CHENNA KRISHNAMA CHARYULU KARAMPUDI VERSUS THE ADDITIONAL COMMISSIONER APPEALS1 AND ANOTHER 2022 (7) TMI 82 - TELANGANA HIGH COURT where it was held that Though the lower appellate authority may be right in holding that while it may allow filing of an appeal beyond the limitation of three months for a further period of one month, therefore, by extension of limitation beyond the extended period of one month delay beyond the extended period of one month cannot be condoned, we are of the view that such a stand taken by respondent No.1 may adversely affect the petitioner - It was also held that It is further found that the issue pertains to cancellation of GST registration of the petitioner. In the facts and circumstances of the case, it would be just and proper if the entire matter is remanded back to respondent No.2 to reconsider the case of the petitioner and thereafter to pass appropriate order in accordance with law. Matter remanded back to respondent No.3 to consider the grievance expressed by the petitioner against cancellation of GST registration and thereafter pass an appropriate order in accordance with law - petition allowed by way of remand.

Summary

Issues:
Cancellation of GST registration due to non-filing of returns, Appeal filed beyond the extended period of limitation under Section 107(1) of the Central Goods and Services Tax Act, 2017.

Analysis:
The petitioner's GST registration was canceled by respondent No.3 due to non-filing of returns for six months. The appeal filed by the petitioner was dismissed by respondent No.2 citing that the appeal was filed beyond the extended period of limitation under Section 107(1) of the CGST Act. The court noted that a similar issue was addressed in a previous decision of the court. The court highlighted the provisions of Section 107(1) and (4) of the CGST Act regarding the limitation for filing an appeal and the authority's discretion to allow further time for appeal submission with sufficient cause shown by the appellant.

The court acknowledged that the delay beyond the extended period of one month cannot be condoned, but expressed concerns that such a strict stance may adversely affect the petitioner, especially considering the absence of a GST Tribunal as a remedy. The court emphasized that the cancellation of GST registration is a crucial issue in the case. Consequently, the court decided to remand the matter back to respondent No.2 for reconsideration and to pass an appropriate order in accordance with the law. The court directed the petitioner to submit all the required returns as per the statute during the reconsideration process.

In conclusion, the court set aside the previous orders related to the cancellation of GST registration and the dismissal of the appeal, remanding the matter back to respondent No.3 for reevaluation. The court emphasized the importance of addressing the petitioner's grievance regarding the cancellation of GST registration and instructed the petitioner to comply with statutory return submissions during the reconsideration. The writ petition was disposed of without any order as to costs, and pending miscellaneous applications were closed.