2022 (6) TMI 273 - HC - GST

GST registration restored despite time-barred appeal under Section 107, petitioner must file returns within 45 days

The HC disposed of a writ petition regarding GST registration cancellation where the petitioner's appeal was filed beyond the prescribed limitation period ... Maintainability of appeal before Commissioner (appeals) - Period of limitation - Seeking restoration of cancellation of registration - appeal filed by the petitioner beyond the period prescribed under Section 107 of the respective GST Act, 2017 - HELD THAT:- On 31.01.2022, a batch of writ petitions in TVL. SUGUNA CUTPIECE CENTER VERSUS THE APPELLATE DEPUTY COMMISSIONER (ST) (GST), THE ASSISTANT COMMISSIONER (CIRCLE), SALEM BAZAAR [2022 (2) TMI 933 - MADRAS HIGH COURT], relating to the same issue were disposed by this Court subject to certain conditions under similar circumstances. The same relief is to be granted to the petitioner as the petitioner also has similar grievances in those writ petitions - it was held in the case that no fault can be attributed to the impugned orders passed by the Appellate Commissioner inasmuch as they cannot exercise jurisdiction beyond the provisions of the Act and are bound to Act in accordance of the provisions of the Act. At the same time, it is found that there are overwhelming reasons for granting reliefs to these petitioners to restore their registration. Following the earlier decision, relief granted the assessee. The petitioners are directed to file their returns for the period prior to the cancellation of registration, if such returns have not been already filed, together with tax defaulted which has not been paid prior to cancellation along with interest for such belated payment of tax and fine and fee fixed for belated filing of returns for the defaulted period under the provisions of the Act, within a period of forty five (45) days from the date of receipt of a copy of this order, if it has not been already paid. On payment of tax, penalty and uploading of returns, the registration shall stand revived forthwith. Writ petition disposed off. Issues Involved:1. Challenge to the order dismissing the appeal filed beyond the prescribed period under Section 107 of the GST Act, 2017.2. Categorization of cases based on the nature of the challenge and procedural compliance.3. Legal provisions and procedural requirements for revocation of GST registration under Section 30 of the GST Act.4. Impact of various government notifications and Supreme Court orders on the limitation period for filing appeals and applications for revocation.5. Court's discretionary power under Article 226 of the Constitution to grant relief.Detailed Analysis:1. Challenge to the Order Dismissing the Appeal:The petitioner challenged the impugned order dated 13.12.2021, which dismissed the appeal filed beyond the period prescribed under Section 107 of the GST Act, 2017. The court noted that similar grievances had been addressed in a batch of writ petitions disposed of on 31.01.2022, and the same relief should be granted to the petitioner.2. Categorization of Cases:The court identified four broad categories of cases:- First Category: Direct challenge to the order of cancellation of GST registration under Section 29.- Second Category: Petitioners who filed applications under Section 30 for revocation but were rejected for not responding to notices.- Third and Fourth Categories: Petitioners who filed appeals under Section 107 beyond the prescribed period, resulting in dismissal due to limitation issues.3. Legal Provisions and Procedural Requirements:The court extensively discussed the legal framework governing GST registration and its cancellation:- Section 29: Deals with the cancellation or suspension of registration.- Section 30: Provides for the revocation of cancellation of registration, initially allowing a 30-day window for filing applications.- Rule 23 of GST Rules: Implements Section 30 by prescribing the procedure for revocation.The court noted that the GST Council and the government had issued several notifications and amendments to address procedural difficulties and extend deadlines, such as:- Order No.5/2019-GST: Allowed filing applications for revocation of cancellation by 22.07.2019.- Order No.01/2020-Central Tax: Extended the time for filing applications for revocation up to 31.08.2020.- Notification No.34/2021-Central Tax: Extended the time limit for applications falling between 01.03.2020 and 31.08.2021 to 30.09.2021.4. Impact of Notifications and Supreme Court Orders:The court considered the impact of various notifications and Supreme Court orders extending the limitation period due to the COVID-19 pandemic. The Hon'ble Supreme Court's orders in Miscellaneous Application No.665/2021 provided extensions for filing suits, appeals, and applications, which influenced the court's decision to grant relief to the petitioners.5. Court's Discretionary Power under Article 226:The court emphasized its power under Article 226 of the Constitution to ensure justice and uphold the rule of law. It highlighted that denying the petitioners the opportunity to revive their GST registration would violate their constitutional rights under Articles 14, 19(1)(g), and 21. The court concluded that the impugned orders should be quashed, allowing the petitioners to file fresh applications for revocation of cancellation, subject to specific conditions to prevent abuse and ensure compliance.Conclusion:The court allowed the writ petitions, quashing the impugned orders and granting the petitioners the opportunity to revive their GST registration, subject to conditions such as filing returns, paying taxes, and complying with procedural requirements within specified timelines. The court directed the respondents to facilitate this process and make necessary changes to the GST portal. The decision aims to integrate the petitioners back into the GST fold, ensuring tax compliance and preventing revenue loss.