Taxpayer's GST Registration Cancellation Appeal Rejected After 18-Month Delay Exceeding Section 107's Time Limit

The HC dismissed a petition challenging an Appellate Authority's decision that rejected an appeal against GST registration cancellation. The registration was cancelled on 19.06.2019 for non-filing of returns, but the taxpayer only filed an appeal on 30.01.2021-approximately 18 months later. Section 107 of the GST Act allows appeals within 3 months, with a possible 1-month extension for sufficient cause. The HC upheld the dismissal as the petitioner provided no explanation for the substantial delay that far exceeded the statutory limitation period of 4 months.

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Issues:
Challenge to order cancelling GST registration due to non-filing of return; Appeal dismissal based on time limitation under Section 107 of GST Act.

Analysis:
The petitioner challenged the order cancelling their GST registration due to non-filing of returns. The Appellate Authority dismissed the appeal as time-barred under Section 107 of the GST Act. The petitioner failed to appear during the proceedings. The respondents highlighted that the registration was cancelled on 19.06.2019, and the appeal was filed on 30.01.2021, well beyond the prescribed time limit. The Appellate Authority, considering the provisions of Section 107, dismissed the appeal due to the significant delay in filing. The High Court reviewed the records and noted the unexplained delay of one and a half years in filing the appeal, which exceeded the permissible time frame of four months from the date of registration cancellation. The Court emphasized that the appellant did not provide sufficient reasons for the delay in filing the appeal.

The High Court referred to Section 107(1) and (4) of the GST Act, which allow for a three-month appeal period from the date of the order, with a provision for an additional one-month extension if there is a sufficient cause for the delay. Despite the total permissible period of four months for filing the appeal, the petitioner failed to meet the deadline, and no valid reasons for the delay were presented. The Court concluded that the Appellate Authority did not err in dismissing the appeal, as the petitioner did not justify the prolonged delay in filing the appeal. Consequently, the High Court found no merit in the petitioner's case and dismissed the petition accordingly.

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