GST Registration Cancellation Appeal Revived: Supreme Court's COVID-19 Limitation Period Extension Must Apply

HC set aside the Appellate Order that had rejected the petitioner's GST registration cancellation appeal on grounds of limitation. The Court found that the Appellate Authority failed to apply the Supreme Court's COVID-19 directive excluding the period from 15.03.2020 to 02.10.2021 when computing limitation periods. Since the appeal was filed within the condonable period as per SC's order dated 23.09.2021, the HC restored the appeal and directed the Appellate Authority to hear the case on merits, subject to statutory compliance.

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Issues:
Challenge to rejection of appeal on the ground of limitation under Section 107(1) of the CGST Act.

Analysis:
The writ petition challenges the rejection of the appeal by the Additional Commissioner, GST (Appeals) on the basis that it was filed beyond the statutory period prescribed under Section 107(1) of the CGST Act. The petitioner contends that the appeal was against the cancellation of registration and should have been considered in light of the Hon'ble Supreme Court's orders related to the extension of limitation periods due to the COVID-19 pandemic.

The petitioner's counsel provided a timeline of events, including key dates and legal provisions, to demonstrate that the Appellate Authority disregarded the Supreme Court's rulings. The Supreme Court had extended the period of limitation multiple times due to the pandemic, with the most recent order on 23rd September, 2021, excluding the period from 15.03.2020 to 02.10.2021 for computing limitation periods.

The petitioner submitted a copy of the Supreme Court's order dated 23rd September, 2021, which clearly directed the exclusion of the mentioned period for computing limitation periods. The counsel argued that since the appeal was filed within the condonable period of limitation as per the Supreme Court's order, the rejection by the Appellate Authority was unjustified.

The Senior Standing Counsel for CT & GST Organization acknowledged the petitioner's position, and no serious objections were raised. The High Court, after reviewing the Supreme Court's order, found that the Appellate Authority had ignored the directive to exclude the specified period for computing limitation periods. As the appeal was filed within the condonable period, the Court set aside the Appellate Order and restored the appeal for further proceedings, emphasizing the need for compliance with statutory requirements.

In conclusion, the High Court allowed the writ petition, setting aside the Appellate Order and restoring the appeal for proper consideration. The Court directed the Appellate Authority to proceed with the appeal, ensuring a fair hearing for the petitioner and deciding the case on its merits, subject to compliance with legal requirements.

Judgment:
The High Court of Orissa set aside the Appellate Order rejecting the appeal on the ground of limitation under Section 107(1) of the CGST Act, restoring the appeal for further proceedings with a directive to the Appellate Authority to hear the case on its merits and ensure compliance with statutory requirements.

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