2024 (5) TMI 241 - HC - GST

Maintainability of petition - availability of alternative remedy - time limitation to file appeal - Cancellation of GST registration of petition - HELD THAT - An appeal was to be filed on or before 30.06.2022 as permitted by the Hon ble Supreme Court and if necessary with a delay condonation application within one month thereafter. The appeal is said to have been filed only on 18.10.2023, after about one year three months eighteen days from the date on which even the extended limitation period expired. In the above circumstances, there are no reason to invoke the extraordinary jurisdiction under Article 226, especially since it is not a measure to be employed where there are alternate remedies available and the assessee has not been diligent in availing such alternate remedies within the stipulated time. The law favours the diligent and not the indolent. The petitioner does not have any case that the show-cause notice was not received by him. Further, it is also pertinent that the reason stated in the show-cause notice for cancellation of registration is that the petitioner has not filed returns for three consecutive tax periods. The petitioner does not have a case that he had in fact filed a return, in the three consecutive tax periods. Petition dismissed.

Summary

Issues Involved:
The cancellation of registration by Annexure-P/3 order and the delay in availing the appellate remedy.

Cancellation of Registration:
The petitioner challenged the cancellation of registration by Annexure-P/3 order. The court noted that there is an appellate remedy available under Section 107 of the Bihar Goods and Services Tax Act, 2017, which permits an appeal to be filed within three months and a further period of one month for delay condonation with satisfactory reasons. Due to the pandemic situation, the Hon'ble Supreme Court had granted a saving of limitation between 15.03.2020 till 28.02.2022. The order impugned in the appeal was dated 17.03.2021, and the appeal was to be filed on or before 30.06.2022 as permitted by the Hon'ble Supreme Court. However, the appeal was filed only on 18.10.2023, well after the extended limitation period expired. The court held that there was no reason to invoke the extraordinary jurisdiction under Article 226, especially when alternate remedies were available, and the petitioner had not been diligent in availing such remedies within the stipulated time.

Failure to File Returns:
The court observed that the petitioner did not contest receiving the show-cause notice for cancellation of registration. The reason stated in the notice was that the petitioner had not filed returns for three consecutive tax periods. The petitioner also did not claim to have filed returns for the said periods. Based on these facts, the court found no merit in the petitioner's case and dismissed the writ petition.

Conclusion:
In conclusion, the court dismissed the writ petition challenging the cancellation of registration, citing the petitioner's failure to avail the appellate remedy in a timely manner and the lack of evidence to support the claim of filing returns for the tax periods in question.