2022 (11) TMI 592 - HC - GST

Cancellation of GST registration of petitioner - non-filing of GST returns for the last six months - time limitation - HELD THAT - The decisions of this Court in NITHYA CONSTRUCTIONS VERSUS THE UNION OF INDIA 2022 (7) TMI 186 - TELANGANA HIGH COURT and 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 As per subsection (1) of Section 107 of the CGST Act, limitation for filing appeal is three months from the date of communication of the order appealed against. Under subsection (4) of Section 107 of the CGST Act, the appellate authority may allow the appeal to be presented within a further period of one month, provided sufficient cause is shown by the appellant. The order of respondent No.5 dated 08.04.2020 and the order of respondent No.4 dated 21.10.2022 is set aside - the matter remanded back to respondent No.5 to consider and pass fresh order regarding cancellation of GST registration of the petitioner in accordance with law after giving due opportunity of hearing to the petitioner - petition allowed by way of remand.

Summary

Issues:
1. Quashing of order dated 08.04.2020 passed by respondent No.5 and order-in-appeal dated 21.10.2022 passed by respondent No.4.
2. Cancellation of GST registration of the petitioner.
3. Grounds for challenging the cancellation of GST registration.
4. Dismissal of the appeal on the ground of limitation.
5. Remanding the matter back to respondent No.5 for a fresh decision.

Analysis:
The petitioner, engaged in electrical and civil works, sought to quash the order cancelling its GST registration. The petitioner registered under the GST Act in 2018 but faced cancellation due to non-filing of returns. Despite submitting an explanation, respondent No.5 cancelled the registration on 08.04.2020. The petitioner appealed to respondent No.4, whose order-in-appeal on 21.10.2022 dismissed the appeal citing limitation. During the hearing, it was noted that similar cases were remanded for fresh decisions. Referring to past judgments, the Court set aside both orders and remanded the matter to respondent No.5 for a fresh decision within four weeks, ensuring a fair hearing for the petitioner.

The Court's decision was influenced by precedents like Nitya Construction v. Union of India and M/s. Chenna Krishnamacharyulu v. Additional Commissioner. By applying the principle of parity, the Court nullified the previous orders and directed a reconsideration of the cancellation of GST registration. The Court emphasized the importance of following legal procedures and providing opportunities for a fair hearing. The judgment concluded by disposing of the writ petition without imposing any costs, with any pending miscellaneous petitions being dismissed accordingly.