2023 (4) TMI 306 - HC - GST

Cancellation of GST registration of petitioner - petitioner submits that till date no GST Tribunal has been constituted - HELD THAT - This is an order passed by the first appellate authority under Section 107(1) of the CGST Act. 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. 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, but the delay beyond the extended period of one month cannot be condoned, such a stand taken by respondent No.2 may adversely affect 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.1 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.1 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:
The issues involved in the judgment are the quashing of the order cancelling GST registration of a municipal body by the Superintendent of Central Tax and the dismissal of the appeal by the Joint Commissioner (Appeals-I) due to filing beyond the extended limitation period.

Cancellation of GST Registration:
The petitioner, a municipal body in Naayanpet District, Telangana, had its GST registration cancelled by the Superintendent of Central Tax. The petitioner appealed this cancellation, but the appeal was dismissed by the Joint Commissioner (Appeals-I) on the grounds of being filed beyond the extended limitation period. The Court noted that the appeal was dismissed due to being filed beyond the extended limitation period of one month, as allowed under Section 107(4) of the CGST Act. However, the Court expressed concern that the dismissal of the appeal may leave the petitioner without a remedy, especially since no GST Tribunal has been constituted under Section 109 of the CGST Act. In light of this, the Court remanded the matter back to the Superintendent of Central Tax to reconsider the case of the petitioner and pass an appropriate order in accordance with the law.

Remand and Disposal of Writ Petition:
The Court, without expressing any opinion on the merit of the case, remanded the matter back to the Superintendent of Central Tax to consider the petitioner's grievance against the cancellation of GST registration and to pass an appropriate order. The Court emphasized that the petitioner would be allowed to submit returns as per the statute when the matter is heard on remand. Consequently, the writ petition was disposed of, and any miscellaneous applications pending were closed without any order as to costs.