Limitation Period for GST Appeal Suspended During COVID-19: Ex-parte Cancellation Case Remitted for Merits Hearing

The HC allowed the petition challenging dismissal of appeal as time-barred under U.P. GST Act. Petitioner's registration was cancelled by ex-parte order on 17.9.2019, with service deemed on 31.8.2020 per Government Order. Limitation period was suspended from 15.3.2020 to 14.3.2021. Since appeal was filed on 19.3.2021, it was within time limit counting from 15.3.2021. Court set aside the dismissal order and remitted the matter to appeal authority for hearing on merits.

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Issues:
Challenge to order dismissing appeal as time-barred under U.P. GST Act, 2017.

Analysis:
The judgment deals with a challenge to an order dismissing an appeal as time-barred under the U.P. GST Act, 2017. The petitioner's registration was cancelled by an ex-parte order on 17.9.2019, which was claimed to have been served through the common portal. However, the physical copy was never served on the petitioner. Subsequently, a Government Order dated 29.7.2020 deemed the service of orders in such cases to have been made on 31.8.2020. The period of limitation for filing the appeal was suspended from 15.3.2020 to 14.3.2021 due to various court orders.

The Court held that since the order was deemed to have been served on 31.8.2020, the limitation period for filing the appeal would start running from 15.3.2021. As the appeal was filed on 19.3.2021, it was within the prescribed time limit. Therefore, the impugned order dismissing the appeal as time-barred was set aside. The matter was remitted to the appeal authority to hear and decide the appeal on its merits, treating it as filed within time. Consequently, the petition was allowed, and the judgment favored the petitioner based on the suspension of the limitation period.

This judgment highlights the importance of adhering to statutory timelines for filing appeals under the U.P. GST Act, 2017. It also underscores the significance of court orders suspending limitation periods in certain circumstances, ensuring that parties are not unfairly prejudiced by procedural delays. The Court's decision to set aside the order and allow the appeal demonstrates a commitment to upholding procedural fairness and ensuring that parties have a meaningful opportunity to present their case.

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