Tax Appeal Wins: Limitation Period Relaxation Enables Judicial Review of GST Registration Cancellation Challenge

HC allowed the appeal challenging tax registration cancellation. Despite being initially deemed time-barred, the court found that limitation period relaxations applicable to GST registration revocation should extend to appeal proceedings. The court set aside the appellate authority's order and remitted the matter for fresh consideration, effectively treating the appeal as filed within permissible time limits.

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Issues:
1. Appeal against the order cancelling registration under the Uttar Pradesh Goods & Services Tax Act, 2017 dismissed as time-barred by the first appellate authority.

Analysis:
The petitioner filed a writ petition against the order dated 31.03.2022 passed by the first appellate authority, which rejected the appeal filed by the petitioner against the order dated 17.09.2021 cancelling the petitioner's registration under the Uttar Pradesh Goods & Services Tax Act, 2017. The appeal was dismissed as time-barred, considering the date of the order impugned therein as 11.09.2019, while the petitioner filed the appeal on 18.09.2021. The petition was entertained due to the absence of a constituted Tribunal.

The petitioner argued that even if the date of the order cancelling the registration is considered to be 11.09.2019, the appeal filed on 18.09.2021 was within the time limit. The petitioner relied on various orders and notifications to support the argument that the period of limitation to seek revocation of the cancellation order was in abeyance until a certain date, and this principle should apply to appeal proceedings as well.

The Standing Counsel contended that no benefit was granted concerning the filing of appeals, and thus, the period of limitation must be strictly construed. However, the Court noted that statutory remedies, whether through applications or appeals, must be real and available to citizens aggrieved by orders passed by statutory authorities.

The Court emphasized that the intent of the Government to grant relaxation of limitation with respect to orders for cancellation of registration should not be restricted to revocation applications only but should also extend to appeal proceedings. The relaxation of limitation was based on difficulties in service of orders during the implementation of the GST regime and later due to COVID circumstances. Therefore, the appellate authority erred in rejecting the appeal as time-barred, and the Court set aside the order, remitting the matter for fresh orders to be passed in accordance with the law, treating the appeal as within the limitation period.

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