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2024 (12) TMI 729 - HC - GSTCancellation of registration for noncompliance of GST REG 2017 - rejection of appeal on the ground of limitation itself - failure to to furnish a return under section 39 of the CGST Act, 2017 - HELD THAT - It appears that a show cause notice was issued to the petitioner on 15.01.2023 which clearly indicates the reason for issuing the show cause notice was that the petitioner has not complied with GST REG 2017 issued to it within the stipulated period - It further transpires from record that the GST registration of the petitioner was cancelled vide order dated 15.01.2023 (Annexure-8) in Form GST REG 2019; however, petitioner filed appeal on 28.03.2024 with a delay of 403 days i.e. more than a year; whereas the normal period for filing appeal is three months as prescribed under section 107 (1) of CGST Act, 2017. There are no hesitation in holding that the petitioner firm is not entitled for any relief on the ground of delay and latches coupled with the fact of being lethargic in approach, inasmuch as, on the one hand, the petitioner did not file return regularly and thus has not complied with GST REG 2017 issued to him in any manner; and on the other hand, the petitioner filed an appeal after a delay of 403 days which is admittedly beyond the period of 3 months limitation fixed for filing appeal under the Act. Having regard to the admitted facts and circumstances, neither there is any perversity in the order of cancellation of GST registration; nor is there any necessity for interference with the appellate order, inasmuch as, the same has been filed beyond the statutory period of limitation. Petition dismissed.
Issues:
1. Restoration of GST Registration 2. Validity of GST Registration 3. Quashing of Order Cancelling Registration 4. Appeal Dismissal on Grounds of Limitation Analysis: Restoration of GST Registration: The petitioner sought restoration of its GST Registration, arguing that the cancellation served no useful purpose and a liberal approach should have been taken due to financial constraints affecting compliance. The respondent contended that the cancellation was due to non-compliance with mandatory procedures. The Court noted that a show cause notice was issued to the petitioner for non-compliance with GST regulations, leading to the cancellation of registration. The delay in filing an appeal was also highlighted, with the petitioner submitting the appeal 403 days late, well beyond the statutory three-month period. Validity of GST Registration: The petitioner requested a declaration of the validity of its GST Registration from a specific date. However, the Court found that the petitioner's failure to comply with GST regulations within the stipulated period led to the cancellation of registration. The Court emphasized that the delay in filing the appeal further weakened the petitioner's case, as it was significantly beyond the prescribed three-month limitation period. Quashing of Order Cancelling Registration: The petitioner sought to quash the order cancelling its GST Registration, arguing that the authorities should have considered the business constraints faced by the petitioner. The respondent justified the cancellation based on non-compliance with statutory requirements. The Court observed that the cancellation order was issued due to the petitioner's failure to adhere to GST regulations, as highlighted in the show cause notice. The Court found no merit in quashing the cancellation order, considering the petitioner's lack of timely compliance and delayed appeal filing. Appeal Dismissal on Grounds of Limitation: The petitioner's appeal was dismissed by the appellate authority on the grounds of limitation, as it was filed 403 days late instead of within the prescribed three-month period. The petitioner argued for a more lenient approach due to financial constraints affecting compliance. However, the Court held that the delay in filing the appeal, coupled with the petitioner's non-compliance with GST regulations, justified the dismissal based on statutory limitations. In conclusion, the Court dismissed the writ petition, emphasizing the petitioner's failure to comply with statutory timelines and regulations, leading to the cancellation of GST Registration and dismissal of the appeal. The Court found no grounds for interference, given the admitted delays and non-compliance by the petitioner.
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