Registration cancellation appeal dismissed after 865 days delay, COVID-19 circular inapplicable to Section 107 appeals

MP HC dismissed petition challenging cancellation of registration where petitioner filed appeal after 865 days delay. Court held Section 29 CGST Act deals with revocation applications while Section 107 governs appeals with three-month limitation. Circular dated 25/06/2020 only applied to Section 29 revocation applications, not Section 107 appeals. Since registration was cancelled on 04/02/2019 and appeal filed on 16/09/2019, COVID-19 related directives issued in 2020 were inapplicable. Lower appellate authority's rejection for being time-barred was upheld as justified.

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Issues:
Challenge to cancellation of registration and dismissal of appeal based on circular dated 25/06/2020.

Analysis:
The petitioner, a service provider registered under GST, challenged the cancellation of registration and dismissal of the appeal by the Appellate Authority. The petitioner argued that the orders were passed without considering the circular dated 25/06/2020, which provided relaxation for revoked registrations. The petitioner also claimed entitlement to relief based on a Supreme Court directive regarding extension of limitation orders during the Covid-19 pandemic.

The respondents contended that the petition was misconceived as the grounds for challenge were not applicable to the petitioner. They argued that reliance on the circular dated 25/06/2020 was misplaced, urging the dismissal of the petition.

Upon considering the arguments, the Court referred to Sections 29 and 107 of the Central Goods and Services Tax Act 2017. Section 29 pertains to cancellation or suspension of registration, while Section 107 deals with appeals to the Appellate Authority. The Court noted that the limitation for filing an appeal under Section 107 is three months. The circular dated 25/06/2020 specifically addressed Section 29, detailing the calculation of the application period for revocation of registration cancellation.

The Court found that the circular was limited to Section 29 and did not apply to Section 107. It observed that the appeal by the petitioner was time-barred under Section 107, as the registration was canceled in 2019, and the appeal was filed in 2019, pre-dating the Covid-19 pandemic directives. Consequently, the Court upheld the decision of the lower Appellate Authority, dismissing the writ petition without costs.

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