2024 (8) TMI 507 - HC - GST

Maintainability of appeal - time limitation - Cancellation of GST registration due to non-filing of returns - HELD THAT - A glance at the provisions under Section 107 would reveal that in the conditions mentioned under sub-sections (3) and (4) the appellate authority may extend the period of three months by another three months and also by another one month. This is thus quite apparent that in appropriate cases an appeal under Section 107 can be filed within a period of seven months. Therefore, having regard to the provisions under sub-sections (3) and (4) of Section 107, the delay in filing the appeal by the petitioner-firm could have been extended by the appellate authority and the appeal filed on 26th August, 2023 which was within seven months from the date of order of cancellation was maintainable and could not have been rejected on the ground of delay. The appellate authority could have alternatively granted opportunity to the petitioner-firm to approach the appropriate authority under Section 30 for revocation of the cancellation of licence after paying the applicable penalty, fines, interest etc. Section 14 of the Limitation Act, 1963 provides exclusion of time spent in prosecuting the matter in wrong forum. This is admitted at the bar that the application of the Limitation Act is not excluded in the GST Act and, therefore, the benefit under Section 14 shall be available to the petitioner-firm, if necessary. The order dated 8th September, 2023 is set aside and this writ petition is allowed to the extent that the petitioner-firm shall be permitted to file an application under Section 30 after completing all the formalities within 30 days and that application shall be dealt with in accordance with law. Petition allowed.

Issues:
1. Dismissal of appeal under GST Act by Additional Commissioner of Central Taxes.
2. Cancellation of GST registration due to non-filing of returns.
3. Provisions under Sections 39, 30, and 45 of the GST Act.
4. Applicability of Section 107 for filing appeals.
5. Extension of appeal filing period and opportunity for revocation of cancellation.
6. Application of Limitation Act, 1963 in GST matters.

Analysis:
1. The judgment addresses the dismissal of Appeal Case No. 126/CGST/RAN/2023 by the Additional Commissioner of Central Taxes, who deemed the appeal not maintainable and barred by limitation. The petitioner's firm, M/s. Rana Engineering, was aggrieved by this decision, which also involved the denial of benefits under the Amnesty Scheme due to the cancellation order passed after the scheme's deadline.

2. The petitioner's firm had its GST registration cancelled for not filing returns for over six months, leading to an appeal under Section 107 of the GST Act. The court noted that the firm did not avail opportunities under Sections 30 and 45 for restoration of registration before directly filing the appeal, which was subsequently dismissed.

3. Section 39 of the GST Act mandates monthly return filing for registered entities, with provisions under Sections 30 and 45 allowing for restoration of registration within specified timelines. The court highlighted the importance of complying with these requirements and the need to follow the prescribed procedures for revocation of cancellation.

4. The judgment delves into the provisions of Section 107 of the GST Act, emphasizing that appeals can be filed within a period of seven months under certain conditions. The court found that the delay in filing the appeal by the petitioner's firm was within the permissible timeframe and should not have been rejected solely based on delay.

5. Regarding the extension of the appeal filing period and the opportunity for revocation of cancellation, the court opined that the appellate authority could have granted the petitioner's firm the chance to approach the appropriate authority under Section 30 for revocation after fulfilling necessary requirements. The judgment also discussed the applicability of Section 14 of the Limitation Act, 1963, allowing for exclusion of time spent in the wrong forum.

6. In conclusion, the court set aside the order of dismissal dated 8th September, 2023, allowing the petitioner's firm to file an application under Section 30 within 30 days while ensuring compliance with all formalities. The application would then be processed in accordance with the law, providing the firm with an opportunity for revocation of the cancellation of its registration.

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