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TMI Blog2024 (9) TMI 1576X X X X Extracts X X X X X X X X Extracts X X X X ..... e an appeal. A similar issue has been dealt with by a Hon'ble Division Bench of Bombay High Court [ 2023 (2) TMI 759 - BOMBAY HIGH COURT] , wherein it has been held that ' Since it is merely a matter of cancellation of registration, the question of limitation should not bother us since it cannot be said that any right has accrued to the State which would rather be adversely affected by cancellation.' The Central Goods and Service Act was enacted in the year 2017 with an object of levy and collection of tax on intra state supply of goods or services or both by the Central Government. It is not the interest of the government to curtail the right of the entrepreneurs like the petitioner. The petitioner must be allowed to continue his business and to contribute to the State's revenue. In the absence of GST Registration number, a professional cannot raise a bill. If the petitioner is denied a GST registration number, it affects his chances of getting employment or executing works, which ultimately affects his livelihood embodied under Article 21 of the Constitution. The petitioner in this case is a contractor doing contractual works for the Government and its agencies. M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... countant had not filed the returns in time. He further submits that though the appeal remedy is available under Section 107 of GST Act, his appeal was not entertained in view of the statutory limitation period prescribed under the Act. He further submits that since the GSTN number is mandatory for running his business and in view of the cancellation of his registration, his livelihood is affected, he prays this Court to quash the impugned order. 4. The learned Counsel for respondent submits that the petitioner has been provided with sufficient opportunities before cancellation of his registration under the GSTN Act. A show cause notice was issued to the petitioner as early as on 15.07.2022 and sufficient time was given to him to offer his explanation. Since the petitioner failed to respond to the show cause notice, the impugned order came to be passed under the ambit of GST Act. He further submits that the petitioner failed to file the appeal within the prescribed limitation period under Section 107(4) of the GST Act. Therefore, there is no reason to interfere with the impugned order. 5. This Court considered the rival submissions and perused the materials placed on record. 6. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allowed to revive the registration, the state would suffer loss of revenue and the ultimate goal under GST regime will stand defeated. The petitioner deserves a chance to come back into GST fold and carry on his business in legitimate manner. 10. There is one more aspect as far as the issue regarding limitation in filing the appeal under Section 107 of MGST Act is concerned. Indeed the Deputy Commissioner of State Tax has no power to condone the delay beyond 30 days. But then one cannot overlook the aspect of provisions stipulating limitations. The objective is to terminate the lis and not to divest a person of the right vested in him by efflux of time. 11. Since it is merely a matter of cancellation of registration, the question of limitation should not bother us since it cannot be said that any right has accrued to the State which would rather be adversely affected by cancellation. 12. In this regard, a reference can be made to the judgment of the Supreme Court in the case of Mafatlal Industries Ltd. Vs Union of India reported in (1997) 5 SCC 536. The supreme court observed that the jurisdiction of the High Court under Art. 226 of the Constitution of India or Supreme Court under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd in Special Appeal No. 123 of 2022, dated 20.06.2022 in a similar situation has observed as follows: 8) Viewing from another angle, it is apparent that the law made by the Parliament as well as the Legislature with regard to the appeals is very strict, insofar as, that it does not provide an unlimited jurisdiction on the First Appellate Authority to extend the limitation beyond one month after the expiry of the prescribed limitation. In such case, the petitioner/appellant is put to hardship and is left without remedy. In such cases, the party concerned may face starvation because of denial of livelihood for want of GST Registration. In this case, the petitioner/appellant is a semi-skilled labourer working as a painter doing painting on doors, windows of the houses. Now-a-days bills for any work executed for a private player or, even for the Government agency, are drawn on-line. In most cases, the payments are made direct to the bank on 6 production of the bill with the GST registration number. In the absence of GST registration number, a professional cannot raise a bill. So, if the petitioner is denied a GST registration number, it affects his chances of getting employment or exe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mate manner. 220. The provisions of the GST Enactments and the Rules made there under read with various clarifications issued by the Central Government pursuant to the decision of the GST Council and the Notification issued thereunder the respective enactments also make it clear, intention is to only facilitate and not to debar and de-recognised assesses from coming back into the GST fold. 221. While exercising jurisdiction, under Article 226 of the Constitution, the powers of the Court to do justice i.e., what is good for the society, can neither be restricted nor curtailed. This power under Article 226 can be exercised to effectuate the rule of law. 222. Therefore, power of this Court under Article 226 of the Constitution of India is being exercised cautiously in favour of the petitioners as this power is conceived to serve the ends of law and not to transgress them. 223. In Mafatlal Industries Ltd. Vs. Union of India, (1997) 5 SCC 536, in Paragraph No.77, the Hon ble Supreme Court observed that So far as the jurisdiction of the High Court under Article 226 or for that matter, the jurisdiction of this Court under Article 32 is concerned, it is obvious that the provisions of the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acting under the Act may impose penalty with the gravity of lapses committed by these petitioners by issuing notice. If required, the Central Government and the State Government may also suitably amend the Rules to levy penalty so that it acts as a deterrent on others from adopting casual approach. 229. In the light of the above discussion, these Writ Petitions are allowed subject to the following conditions:- i. The petitioners are directed to file their returns for the period prior to the cancellation of registration, if such returns have not been already filed, together with tax defaulted which has not been paid prior to cancellation along with interest for such belated payment of tax and fine and fee fixed for belated filing of returns for the defaulted period under the provisions of the Act, within a period of forty five (45) days from the date of receipt of a copy of this order, if it has not been already paid. ii. It is made clear that such payment of Tax, Interest, fine / fee and etc. shall not be allowed to be made or adjusted from and out of any Input Tax Credit which may be lying unutilized or unclaimed in the hands of these petitioners. iii. If any Input Tax Credit has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rest. Even for non payment this advance tax, no serious action will be taken against the assesses. The Income Tax Department is only sending reminders to the tax payers, by way of repeated e-mails, SMS and through post. However in the present case, capital punishment of cancellation of registration is made, merely by sending a system generated e-mail in English to the traders, who are not having acquainted with English. These notices are not even provided in their regional languages. 12. The petitioner in this case is a contractor doing contractual works for the Government and its agencies. Most of the small scale entrepreneurs like carpenters, electricians, fabricators etc... are almost uneducated and they are not accustomed with handling of e-mails and other advance technologies. Though they are providing e-mail IDs at the time of Registration, the applications are prepared by some agents by creating an e-mail Ids. In reality, most of the Traders are not accustomed with handling of e-mails. They are also not aware about the consequences of not paying the Returns in Time. The department shall workout the possibilities of issuing these notices in the respective regional languages o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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