2024 (7) TMI 1157 - HC - GST

Maintainability of appeal - time limitation - Cancellation of GST registration of petitioner - petitioner preferred an appeal against the impugned cancellation order before the Appellate Authority on 09.09.2022, however the same was not entertained as it was filed after the expiry of the stipulated period for filling such appeals - HELD THAT - It is material to note that the GST registration of the petitioner was cancelled by the impugned cancellation order with retrospective effect, however, no adverse action to the said effect was proposed in the impugned SCN. The impugned cancellation order also does not set out any reason for cancelling the petitioner s GST registration with retrospective effect. It is relevant to note that the Supreme Court in IN RE COGNIZANCE FOR EXTENSION OF LIMITATION 2022 (1) TMI 385 - SC ORDER had condoned the delay in cases where the period of limitation expired prior to 28.02.2022. It is considered apposite to set aside the impugned order and remand the matter to the Appellate Authority to decide the petitioner s appeal afresh on merits, uninfluenced by the question of delay, after affording an opportunity of personal hearing to the petitioner - petition disposed off by way of remand.

Summary

Issues:
Challenge to the order cancelling GST registration based on discrepancies in returns filed.

Analysis:
The petitioner contested the order cancelling its GST registration, which was based on discrepancies in the returns filed. The petitioner had migrated to the CGST regime and was assigned a GSTIN. The Proper Officer issued a Show Cause Notice (SCN) due to the petitioner's failure to respond to an earlier notice. The impugned SCN cited the reason for proposing cancellation as the non-filing of ASMT-10. The petitioner's registration was suspended, and failure to respond led to cancellation with retrospective effect. The cancellation order did not specify any appointed date or time for a personal hearing, denying the petitioner a fair opportunity to be heard.

Analysis:
The petitioner's claim of not receiving physical notice and business disruption due to the pandemic was considered. An appeal against the cancellation order was filed after the stipulated period, leading to non-entertainment by the Appellate Authority. Reference was made to the Supreme Court's decision condoning delays in cases where the limitation period expired before a certain date. The cancellation of the GST registration with retrospective effect lacked reasons in both the impugned SCN and the cancellation order.

Analysis:
In light of the peculiar circumstances, the High Court set aside the impugned order and remanded the matter to the Appellate Authority. The Appellate Authority was directed to reevaluate the appeal without considering the delay issue and to provide the petitioner with a personal hearing. A request was made for expeditious disposal of the appeal within eight weeks. The petition was disposed of accordingly.