2021 (11) TMI 972 - Commissioner - GST

Cancellation of registration of petitioner - time limitation for filing appeal - appeal has been filed within the prescribed time- limit or not - appeal filed against the order for cancellation of Registration to be decided are proper, or not - section 107 of CGST Act - HELD THAT - Though the delay in filing the appeal is condonable only for a further period of one month provided that the appellant was prevented by sufficient cause from presenting the appeal is shown and the delay of more than one month is not condonable under the provisions of sub section (4) of Section 107 of the Central Goods and Service Tax Act, 2017. It is also found that the appellant has not submitted any ground for not filing of appeal within the stipulated period. Whereas in the grounds of appeal the appellant has contended that he is facing financial crunch due to Covid-19. Keeping view of the directions of the Apex Court in IN RE COGNIZANCE FOR EXTENSION OF LIMITATION 2021 (11) TMI 387 - SC ORDER wherein it has been directed that for computation of period of limitation of appeal, the period from 15.03.2020 to 02.10.2021 shall stand excluded and balance period of limitation remaining as on 15.03.2021 if any, shall become available with effect from 03.10.2021. The instant appeal has been filed by the appellant on 28.09.2021 against the impugned order dated 14.11.2019 by delay of more than one month from the normal period prescribed under Section 107(1) of the Central Goods and Service Tax Act, 2017. Though the delay in filing the appeal is condonable only for a further period of one month provided that the appellant was prevented by sufficient cause from presenting the appeal is shown and the delay of more than one month is not condonable under the provisions of sub section (4) of Section 107 of the Central Goods and Service Tax Act, 2017. The appellant has filed this appeal beyond the prescribed period that too after expiry of further one month's period in terms of sub section (4) of Section 107 of the Central Goods and Service Tax Act, 2017 which could be condoned by the undersigned - it is clear that the appellate authority has no power to allow an appeal which is filed beyond the prescribed period. Since the appeal is filed after expiry of the prescribed period of three months and a further period of one month which may be condoned by the undersigned, the appeal deserves to be rejected on the grounds of limitation - Appeal dismissed.

Summary

Issues:
1. Timeliness of filing the appeal under Section 107 of the Central Goods and Service Tax Act, 2017.
2. Validity of the appeal filed against the order for cancellation of Registration.

Analysis:
1. Timeliness of Filing the Appeal:
The appellant filed an appeal against the order for cancellation of GST registration after a delay of more than one month from the prescribed period under Section 107(1) of the CGST Act, 2017. The appellant attributed the delay to financial constraints due to the Covid-19 crisis. However, the appellate authority noted that the delay of more than one month is not condonable under the law unless sufficient cause for the delay is demonstrated. The authority referred to the Supreme Court's order extending the limitation period due to the pandemic but emphasized that the delay exceeded the permissible limit for condonation. Citing the case of M/s Singh Enterprises, the authority concluded that the appeal was time-barred and rejected it solely on the grounds of limitation, without delving into the merits of the case.

2. Validity of the Appeal Against Cancellation of Registration:
The appellant contended that they were a genuine taxpayer who faced financial difficulties during the pandemic, affecting their ability to file returns and maintain active GST registration. The appellant highlighted their willingness to rectify the situation by filing pending returns and paying dues promptly. During the virtual personal hearing, the appellant's representative reiterated these grounds and requested a favorable decision based on merits. However, the appellate authority, after reviewing the case facts, emphasized the importance of adhering to statutory timelines for filing appeals. Despite acknowledging the appellant's financial challenges, the authority strictly applied the legal provisions regarding the limitation period for filing appeals, ultimately rejecting the appeal without considering the substantive issues raised by the appellant.

This comprehensive analysis of the judgment highlights the key legal aspects, procedural requirements, and the authority's decision-making process regarding the timeliness and validity of the appeal in the context of GST registration cancellation.