Court orders fresh application review in GST cancellation case, stresses independence

The court disposed of the writ petition concerning the cancellation of registration under the Goods and Services Tax Act, 2017. The petitioner's challenge against the rejection of the revocation application was based on the extension of the limitation period for such applications. The court directed the petitioner to file a fresh revocation application, assuring an impartial review by the Assistant Commissioner, Commercial Tax, without influence from the previous appellate order. This decision aimed to ensure a fair assessment of the revocation application, emphasizing independence in the reviewing process.

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Issues:
1. Cancellation of registration under the Goods and Services Tax Act, 2017 due to non-filing of returns for a continuous period.
2. Rejection of application for revocation of cancellation of registration on the ground of limitation.
3. Appeal against the rejection of revocation application.
4. Extension of the period of limitation for revocation applications.
5. Concern regarding potential influence of the appellate order on the assessing authority.

Analysis:
The judgment pertains to a case where the petitioner, a registered entity under the Goods and Services Tax Act, faced cancellation of registration due to failure to file returns for six consecutive months, violating section 29(2)(c) of the Act. The cancellation was executed through an ex parte order by the Assistant Commissioner, Commercial Tax. Subsequently, the petitioner's application for revocation of the cancellation was rejected by the assessing officer on the grounds of limitation, a decision upheld by the Additional Commissioner, Grade-2 (Appeals), Commercial Tax, through an order dated 26.07.2021.

The petitioner challenged the rejection on merit, arguing that the decision was based on extraneous grounds not previously notified, specifically the limitation aspect. The petitioner's counsel highlighted a notification by the Government of India, extending the limitation period for revocation applications falling between March 1, 2020, and August 31, 2021, until September 30, 2021. This extension prompted the suggestion that the petitioner could file a fresh revocation application under section 30 of the Act.

The concern raised was that the assessing authority might be unduly influenced by the previous appellate order if a new application were to be submitted. However, the learned Standing Counsel assured that the assessing authority would independently evaluate any new application filed in line with the recent notification, without being swayed by the previous appellate decision. Consequently, it was agreed that the petitioner would file a fresh revocation application, and the third respondent, Assistant Commissioner, Commercial Tax, would review and decide on the application impartially, disregarding the earlier appellate order.

The judgment concluded by disposing of the writ petition, emphasizing that the outcome of the appellate order would be contingent upon the decision to be made by the third respondent, ensuring a fair and unbiased assessment of the revocation application.

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