2023 (9) TMI 632 - HC - GST

Rejection of appeal - time limitation - appeal filed after the expiry of four months as prescribed - Violation of principles of natural justice - Cancellation of GST registration of petitioner on the ground of noncompliance of provisions of the GST Act and the Rules - HELD THAT - In considering the issue of limitation by the Appellate Authority, the law would require several factors to be considered like receipt/service of the impugned order by the petitioner as assailed before the Appellate Authority - it is found that an appropriate consideration on such issue is lacking. Thus, as to whether in the facts and circumstances of the case, a conclusive finding could be rendered that the appeal of the petitioner was time-barred, was required to be decided as per law - the Appellate Authority was not justified in recording findings on merits after having come to a conclusion that the appeal was not filed in time and was not maintainable. The impugned order deserves to be set aside and the proceedings be remanded to the Appellate Authority for consideration of the appeal afresh on all counts including on limitation, so that on appropriate consideration the appeal of the petitioner can be decided - Petitioner s appeal is restored to the file of the Additional Commissioner (Appeals)-II, Mumbai.

Summary

Issues Involved:
The issues involved in the judgment are the cancellation of registration under the Goods and Service-tax Act, the subsequent appeal filed by the Petitioner before the Appellate Authority, and the dismissal of the appeal on grounds of limitation and merits.

Cancellation of Registration:
The Petitioner obtained registration under the Goods and Service-tax Act on 20th March, 2019. A show cause notice was issued on 7th January, 2021, proposing to cancel the registration due to noncompliance. The registration was provisionally suspended, and on 30th April, 2021, the registration was cancelled for fraud. The Petitioner applied for revocation on 30th June, 2021, and challenged the cancellation through a writ petition. The Respondents confirmed the cancellation on 31st March, 2022, citing non-existence of the company at its registered place of business and failure to submit books of accounts. The Petitioner was unaware of this order until 20th September, 2022.

Dismissal of Appeal on Limitation and Merits:
The Petitioner filed an appeal before the Appellate Authority on 20th December, 2022, seeking to set aside the cancellation order. The Appellate Authority dismissed the appeal on 19th May, 2023, stating it was time-barred and also rejected the contentions on merits. The Petitioner argued that the appeal was filed within the time limit provided under the CGST Act and that the Appellate Authority erred in deciding the appeal on merits after deeming it time-barred.

Judgment and Decision:
The High Court found that the Appellate Authority was not justified in rejecting the appeal solely on the grounds of limitation and then proceeding to consider the merits. The Court held that the appeal should have been decided on all counts, including limitation, before addressing the merits. Therefore, the Court set aside the impugned order and remanded the proceedings to the Appellate Authority for a fresh consideration of the appeal. The Court emphasized that if the appeal is not time-barred, it should be adjudicated on merits with detailed findings. The order passed in this petition is not to be treated as precedent and is limited to the facts of this case.