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2022 (11) TMI 679 - HC - GSTCancellation of GST registration of the petitioner - non-filling of GST returns and non-payment of tax within stipulated time - case of appellant is that due to untimely demise of his Auditor, such non-compliance took place - satisfactory reason or not - HELD THAT - Though the 1st respondent appellate authority does not have any power to condone the delay in preferring an appeal under Section 107 of the CGST Act, in a given case, it is open for this Court to condone the delay by exercising its powers under Article 226 of the Constitution of India - In the instant case, it is the specific assertion of the petitioner that due to untimely demise of his Auditor and on account of bonafide reasons, unavoidable circumstances and sufficient cause, it was not possible for him to not only file the GST returns and make payment within the stipulated time but also could not prefer the appeal within the prescribed period. The explanation offered by the petitioner in not making GST payment, filing returns and preferring an appeal deserves to be accepted and by adopting a justice oriented approach, it is deemed just and appropriate to set aside the impugned orders and direct the 2nd respondent to restore the GST registration of the petitioner, subject to payment of all dues by the petitioner. Petition allowed.
Issues:
1. Delay in filing appeal due to untimely demise of Auditor. 2. Non-receipt of show cause notice leading to cancellation of GST registration. 3. Appeal for condonation of delay dismissed by appellate authority. 4. Jurisdiction of High Court to condone delay under Article 226 of the Constitution. 5. Justification for condoning delay based on bonafide reasons and unavoidable circumstances. Analysis: 1. The petitioner sought relief to set aside the order dated 06.10.2022 and allow the appeal filed on 16.08.2022 due to the untimely demise of the Auditor, leading to delayed GST payments and non-receipt of the show cause notice, resulting in the cancellation of GST registration. The petitioner argued that the delay in filing the appeal should be condoned due to these circumstances. 2. The petitioner contended that the delay in filing the appeal was a result of not being aware of the show cause notice or the proceedings, as the notice was not received due to the spam filter in the email account. Consequently, the petitioner could not attend the personal hearing or respond to the notice, leading to the cancellation of GST registration by the respondent. The petitioner appealed for the restoration of GST registration. 3. The appellate authority dismissed the appeal, refusing to condone the delay beyond the prescribed period under Section 107 of the CGST Act. The petitioner approached the High Court, arguing that while the appellate authority may not have the power to condone the delay, the High Court can exercise its powers under Article 226 of the Constitution to condone the delay, citing relevant legal precedents. 4. The High Court acknowledged that the appellate authority lacked the power to condone the delay but emphasized that the Court could intervene under Article 226 of the Constitution. Considering the petitioner's explanation for the delay in filing returns and making payments, the Court accepted the reasons as genuine, justifying the condonation of delay and setting aside the impugned orders. 5. Ultimately, the High Court allowed the petition, setting aside the orders dated 06.10.2022 and 15.03.2022, directing the restoration of GST registration, and permitting the petitioner to file GST returns upon payment of outstanding dues. The Court's decision was based on a justice-oriented approach, accepting the petitioner's justifications for the delay and ordering relief accordingly.
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