2022 (11) TMI 277 - HC - GST

Cancellation of registration of petitioner - failure to furnish returns for a continuous period of six months - appeal preferred under Section 107 of the CGST Act - HELD THAT - The issue raised in this writ petition is squarely covered by a recent 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 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. The matter remanded back to the file of respondent No.2 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:
Petitioner seeks quashing of order cancelling GST registration and dismissing appeal due to belated filing.

Analysis:
The petitioner, a proprietary firm providing courier agency services, filed a petition under Article 226 seeking to quash the order cancelling its GST registration and the subsequent dismissal of the appeal. Respondent No.2 had issued a show cause notice regarding non-filing of returns for six months, leading to the cancellation of registration despite the petitioner's explanation. The appeal filed by the petitioner under Section 107 of the CGST Act was dismissed by respondent No.1 on the grounds of being filed belatedly. The issue raised in the writ petition was similar to a previous court decision, emphasizing the importance of timely appeals and the adverse effects of delays on the petitioner, especially when faced with cancellation of GST registration without a constituted GST Tribunal under Section 109 of the CGST Act.

The High Court, in line with the previous decision and considering the circumstances of the case, remanded the matter back to respondent No.2 to reconsider the petitioner's case and pass an appropriate order. The court highlighted the necessity for the petitioner to submit all returns as per the statute during the reconsideration process. Consequently, the court set aside the orders of both respondent No.2 and respondent No.1, directing respondent No.2 to review the petitioner's grievance against the cancellation of GST registration and make a decision in accordance with the law. The writ petition was disposed of without any costs, and any pending miscellaneous petitions were dismissed as a result of the judgment.