2023 (8) TMI 304 - HC - GST

Condonation of delay in filing appeal - appeal filed beyond the condonable period of 30 days - cancellation of GST registration - HELD THAT - Already a detailed order was passed by this Court in the case of TVL. SUGUNA CUTPIECE CENTER VERSUS THE APPELLATE DEPUTY COMMISSIONER (ST) (GST) , THE ASSISTANT COMMISSIONER (CIRCLE) , SALEM BAZAAR 2022 (2) TMI 933 - MADRAS HIGH COURT . The issue was examined. It was concluded that no useful purpose will be served by keeping the assessee outside the purview of the GST regime without reviving their GST registration, as the assessee will continue to carry on business. By not revoking the cancellation of the GST registration, the Government will loose the revenue. It is informed that the order of this Court in the above said case has not been appealed and has been accepted by the State Government. This Court is inclined to allow this writ petition at the stage of admission. Consequently, the delay in filing the appeal stands condoned - The Appellate Commissioner namely the first respondent is directed to pass appropriate orders on merits and in accordance with law, within a period of 30 days from the date of receipt of a copy of this order.

Summary

Issues involved:
The cancellation of GST registration and the filing of a Statutory Appeal beyond the permissible period under the GST Act.

Cancellation of GST registration:
The petitioner, an assessee under the GST, had their GST registration cancelled on 02.01.2023. Subsequently, the petitioner filed a Statutory Appeal before the Appellate Commissioner under Section 107 of the GST Act, 2017. However, the appeal was filed beyond the condonable period of 30 days, leading to its rejection by the Appellate Commissioner. This rejection prompted the petitioner to approach the High Court for redressal.

Legal Precedent and Arguments:
The Standing Counsel for the respondents cited a Supreme Court decision, Assistant Commissioner (CT) LTU, Kakinada and others Vs. Glaxo Smith Kline Consumer Health Care Limited, 2020 SCC Online SC 440, to support the respondents' position against the petitioner. The counsel argued that the issue at hand is squarely covered by the aforementioned decision, indicating that the writ petition should be dismissed based on this precedent.

Court's Decision:
After considering the arguments from both sides, the Court referred to a previous order in a similar case and highlighted the importance of not keeping an assessee outside the GST regime without reviving their registration. The Court noted that failure to revoke the cancellation of GST registration could result in revenue loss for the Government. In light of these considerations, the Court decided to allow the writ petition at the admission stage. The Court directed the Appellate Commissioner to pass appropriate orders on merits within 30 days from the date of the Court's order. The writ petition was disposed of with no costs, and the connected writ miscellaneous petition was closed.