2024 (7) TMI 1297 - HC - GST

Revoking the order cancelling its GST Registration - Rejection on the ground of delay - HELD THAT - Concededly, the petitioner s appeal was delayed by six days; that is, it was six days beyond the stipulated period of three months provided under Section 107 (1) of the CGST Act. Moreover, the petitioner provided the explanation for such delay. He submitted that the concerned GST officer has raised a ticket for rectification of the order dated 04.11.2023 under Section 161 of the CGST Act and the same was also communicated to the petitioner. The petitioner was thus hopeful that its grievance could be resolved by a rectification order. A plain reading of the impugned order indicates that the said explanation was not considered. It is relevant to note that in terms of Section 107 (4) of the CGST Act, the Appellate Authority has the power to condone the delay in filing the appeal by one month. Thus concededly, the delay in filing the appeal could be condoned by the Appellate Authority. However, the Appellate Authority did not examine whether the petitioner was prevented by sufficient cause in filing its appeal and failed to exercise its power for condoning the delay in filing the appeal - the impugned Order-in-Appeal dated 08.05.2024 set aside and the matter remanded to the Appellate Authority for consideration on merits. Petition allowed by way of remand.

Summary

Issues:
Challenge to Order-in-Appeal rejecting appeal against GST registration cancellation due to delay in filing appeal.

Analysis:
The petitioner challenged an Order-in-Appeal dated 08.05.2024, which rejected their appeal against the cancellation of GST registration due to a delay in filing. The cancellation order was issued on 11.07.2023 following a Show Cause Notice dated 08.05.2023. The cancellation order did not specify reasons for the action taken. The petitioner's appeal against the cancellation order was rejected on 04.11.2023, leading to the subsequent challenge. The petitioner filed the appeal on 09.02.2024 under Section 107 of the CGST Act, albeit six days beyond the prescribed three-month period. The petitioner explained the delay by citing a ticket raised for rectification under Section 161 of the CGST Act, hoping for resolution through rectification. However, the explanation was not considered in the impugned order.

The court noted that under Section 107(4) of the CGST Act, the Appellate Authority has the power to condone a delay in filing an appeal by one month. Despite this provision, the Appellate Authority did not assess whether the delay was due to sufficient cause and failed to exercise its power to condone the delay. The court found that the petitioner had provided valid reasons for the delay, which warranted condonation. Consequently, the impugned Order-in-Appeal was set aside, and the matter was remanded to the Appellate Authority for a fresh consideration on merits. The Appellate Authority was directed to expedite the process and ideally dispose of the appeal within six weeks. As a result, the petition was allowed in the mentioned terms, and any pending applications were also resolved.