2023 (1) TMI 436 - HC - GST

Cancellation of registration of petitioner - appeal dismissed on the ground of limitation - HELD THAT - A careful perusal of the impugned order brings to light that the date of communication to the writ petitioner qua the cancellation order is 08.03.2022. Three months therefrom elapsed on 08.06.2022 i.e., the prescribed period qua Section 107 of CG ST Act elapsed on 08.06.2022. Condonable period of one month thereafter elapsed on 08.07.2022. The appeal was preferred by the writ petitioner only on 08.09.2022. Law is well settled that when there is a cap, Section 5 of the Limitation Act cannot be applied and going by Simplex Infrastructure Ltd. Vs. Union of India 2018 (12) TMI 388 - SUPREME COURT , when there is a cap there cannot be any condonation beyond the cap or belated period. As the appellate authority has dismissed the appeal on the ground of limitation, this Court finds no ground to interfere with the impugned order however it is made clear that this writ Court is not expressing any view or opinion on the merits of the matter and it is also made clear that it is open to the writ petitioner to apply afresh for registration and if the writ petitioner chooses to apply afresh for registration, the application shall be processed on its own merits and in accordance with law. Appeal dismissed.

Summary

Issues:
1. Appeal against the order of cancellation of Goods and Service Tax registration on the ground of limitation.

Analysis:
The judgment by the High Court of Madras pertains to a writ petition challenging an order made by the first respondent under Section 107 of the Central Goods and Services Tax Act, 2017, regarding the cancellation of the petitioner's GST registration due to non-filing of monthly returns. The appellate authority had dismissed the appeal on the basis of limitation. The impugned order communicated the cancellation to the petitioner on 08.03.2022, and the prescribed period under Section 107 of the CGST Act expired on 08.06.2022, with a condonable period of one month thereafter, ending on 08.07.2022. However, the appeal was filed by the petitioner only on 08.09.2022, beyond the statutory limitation period.

The Court referred to legal precedents, including the case of Simplex Infrastructure Ltd. Vs. Union of India and Sagufa Ahmed and Others Vs. Upper Assam Plywood Products Pvt. Ltd., emphasizing that when there is a statutory limitation period with a cap, no condonation can be allowed beyond the specified period. Given that the appeal was filed after the expiry of the limitation period, the Court found no grounds to interfere with the impugned order. The judgment clarified that the Court was not expressing any opinion on the merits of the case and allowed the petitioner to apply afresh for registration, with the assurance that the application would be processed on its own merits and in accordance with the law.

Consequently, the captioned writ petition was disposed of with the mentioned observation, and the writ miscellaneous petition was also closed without any order as to costs. The judgment highlights the importance of adhering to statutory limitation periods in appeals and the inability to condone delays beyond the prescribed limits, as established by legal precedents cited in the case.