GST Registration Cancellation: Court Allows Late Appeal Under Section 107 Due to COVID-19 Circumstances

The HC disposed of a writ petition challenging GST registration cancellation, directing the petitioner to file an appeal with the Appellate Authority within two weeks despite the limitation period having expired. The court acknowledged that COVID-19 circumstances prevented timely filing of the statutory appeal under Section 107. Following precedent, the HC permitted this exceptional approach, allowing the belated appeal to be considered on merits, provided the petitioner complied with the specified timeframe and conditions.

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Issues:
Challenge to cancellation of registration under GST Act without exhausting appeal remedy due to Covid-19 situation.

Analysis:
1. The petitioner, a registered dealer under the GST Act, had their registration cancelled by the revenue for not filing returns consecutively for six months. The petitioner filed a writ petition challenging the cancellation instead of exhausting the appeal provision under Section 107 of the GST Act.

2. The petitioner's counsel explained that due to the Covid-19 situation, they couldn't file the appeal before the Appellate Authority in time, and the limitation under Section 107 expired. The respondent argued that a previous judgment allowed belated appeals under certain conditions, emphasizing the need to follow the same process.

3. The court considered both sides' submissions and examined the materials before it. Referring to a previous order dated 31.01.2022, the court highlighted specific conditions under which belated appeals could be filed, emphasizing the importance of meeting those conditions for filing an appeal in cases like the petitioner's.

4. Acknowledging the petitioner's inability to approach the Appellate Authority in time due to the Covid-19 situation, the court decided to direct the petitioner to file an appeal with the Appellate Authority following the conditions specified in the previous order. The court emphasized the need for timely compliance to ensure the appeal's consideration and final order.

5. The court disposed of the writ petition by directing the petitioner to approach the Appellate Authority within the stipulated time frame and warned that failure to file the appeal within two weeks would result in its rejection by the Appellate Authority. The court concluded the judgment with the order for the writ petition, mentioning no costs and closing connected miscellaneous petitions.

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