2023 (1) TMI 837 - HC - GST

Cancellation of GST registration of petitioner - appealable order or not - application for revocation of the cancellation was not filed within stipulated period - HELD THAT - Perusal of the material on record and Section 107 of the CGST Act, 2017 will indicate that as against an order passed by respondent No.1 canceling the registration of GST, the petitioner has a remedy by way of appeal under Section 107 before the respondent No.1-Appellate Authority. In this context, it is relevant to state that merely because that the petitioner has an option of seeking revocation of the cancellation under Section 30 of the CGST Act, it cannot be said that independent of the said remedy of seeking revocation of cancellation, an appeal would not be maintainable and as such, the impugned order passed by respondent No.1 summarily dismissing the appeal on the ground that it is not maintainable in view of availability of the remedy of seeking revocation of the cancellation is clearly contrary to Section 107 and Section 30 of the CGST Act and same deserves to be set aside. Having regard to the material on record and specific assertion on the part of the petitioner that it was not possible for him to seek revocation of the cancellation order on account of the Covid-19 pandemic and till disposal of the appeal by the respondent-Appellate Authority, the said explanation offered by the petitioner in not seeking revocation of the cancellation within a stipulated period of 30 days under Section 30 of the CGST Act is to be held as valid and proper and respondents are to be directed to reconsider the claim of the petitioner for revocation of the cancellation order in accordance with law, subject to payment of outstanding due taxes by the petitioner in accordance with law. Petition allowed.

Summary

Issues:
Petition seeking writ of Mandamus to quash impugned order revoking GST registration and direct revocation by Respondent No.2.

Analysis:
1. The petitioners sought relief through a writ to quash the order revoking GST registration and direct Respondent No.2 to revoke the cancellation. The learned counsel for the petitioner argued that the petitioner couldn't appeal within the prescribed time due to valid reasons and had paid all taxes up to the cancellation date. The petitioner approached the court seeking relief against the impugned order dated 29.03.2022.

2. The counsel for the petitioner relied on various judgments to support their contention. The respondents, through their counsel, opposed the petition, claiming no merit in it and requested its dismissal. The court examined the material on record and Section 107 of the CGST Act, 2017, highlighting the remedy available to the petitioner through an appeal under Section 107 against the cancellation of GST registration.

3. The court noted that the petitioner's inability to seek revocation within the stipulated period due to the Covid-19 pandemic was a valid reason. It held that the impugned order dismissing the appeal as not maintainable was contrary to the provisions of Section 107 and Section 30 of the CGST Act. The court directed the respondents to reconsider the petitioner's request for revocation, subject to payment of outstanding taxes, within two weeks.

4. In the final order, the court allowed the petition, set aside the impugned order revoking GST registration, and directed Respondent No.2 to reconsider the petitioner's request for revocation in line with the court's observations and relevant decisions cited. Respondent No.2 was instructed to make a decision within two weeks from receiving a copy of the court's order.