2024 (3) TMI 577 - HC - GST

Power to condone delay u/s 107 of the GST Act - show cause notice issued threatening cancellation of GSTIN registration for non filing of returns - returns filled - Withdrawal from suspension of registration - fresh order of cancellation issued - failed to file GSTR-3B returns for a continuous period of six months - HELD THAT - The petitioner has placed on record the order dated 02.03.2023, which indicates that the petitioner filed pending tax returns. The said order also indicates that the suspension of registration was revoked with effect from 02.03.2023. The subsequent order dated 06.04.2023 was issued on the basis that the petitioner failed to file GSTR-3B returns for a continuous period of six months. The said order also discloses that there are no tax dues as on the date of issuance thereof. Thus, it appears prima facie that the petitioner has a good case on merits. The impugned appellate order sets out the relevant dates. If the appeal had been filed on or before 05.08.2023, the appellate authority had power to condone delay u/s 107 of the GST Act. The appeal was filed on 01.09.2023 and the delay is less than 30 days. Hence, it is an appropriate case to direct the appellate authority to receive and dispose of the appeal on merits. Thus, the order impugned herein is quashed and the matter is remanded to the appellate authority.

Summary

Issues involved:
The rejection of appeal by the 2nd respondent on the ground of belated filing and the subsequent challenge in appellate proceedings.

Summary:
The petitioner, a registered person under GST laws, received a show cause notice threatening cancellation of GSTIN registration for non-filing of returns. Upon filing returns in response, the suspension of registration was revoked. However, a fresh order of cancellation was issued on 06.04.2023, leading to the appeal being rejected based on the limitation of filing.

The petitioner argued that returns were filed upon receipt of the show cause notice, making the subsequent order of cancellation unsustainable. It was also highlighted that the order showed no tax dues for the petitioner. The respondents pointed out that the appeal should have been filed by 05.08.2023 as the impugned order was issued on 06.04.2023, but it was actually filed on 01.09.2023.

The order dated 02.03.2023 indicated that the petitioner had filed pending tax returns and that the suspension of registration was revoked. The subsequent order of cancellation was based on the petitioner's failure to file GSTR-3B returns for six months, despite no tax dues being present. The appellate authority had the power to condone the delay if the appeal had been filed by 05.08.2023, and since it was filed on 01.09.2023 within a 30-day delay, the matter was remanded to the appellate authority for disposal on merits within one month.

Ultimately, the order rejecting the appeal was quashed, and the appellate authority was directed to consider the appeal on merits within a specified time frame, providing a reasonable opportunity to the petitioner. The writ petition was disposed of without any costs.