2022 (5) TMI 453 - HC - GST

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

Rajdhani Security Force Pvt. Ltd. Versus Union of India, State Of Madhya Pradesh Through, Chief Commissioner Goods And Services Tax, Joint Commissioner And Appellate Officer Goods And Services Tax

The HC dismissed a petition challenging an Appellate Authority's decision that rejected an appeal against GST registration cancellation. The registration ... Maintainability of appeal - condonation of delay in filing appeal - Cancellation of GST registration of petitioner - HELD THAT:- Perusal of the records shows that the order of cacellation of registration was passed way back on 19.06.2019 and the appeal was preferred by the petitioner on 30.01.2021. Thus, the appeal was preferred almost after one and half years from the date of order of cancellation of registration - Section 107 (1) of GST Act provides that an appeal can be preferred within a period of three (3) months from the date of the order, while Section 107 (4) of the Act stipulates that the Appellate Authority, if satisfied that the appellant was prevented by sufficient cause from presenting the appeal within the period of limitation of 3 months, allow it to be presented within a further period of one month. Thus, the total period during which the appeal ought to have been preferred was four months from the date of cancellation of registration dated 19.06.2019. However, despite lapse of four months, the appeal was not preferred by the appellant/petitioner, nor even in the memo of appeal, sufficient reasons for not filing the appeal in time were disclosed. There was unexplained delay of 1 ½ years in filing the appeal - the respondent No.4 has not committed any error while dismissing the appeal preferred by the present petitioner - Petition dismissed. 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.