Registration cancellation overturned due to improper ex-parte proceedings and incorrect limitation period calculation during COVID suspension

The Allahabad HC allowed a petition challenging the cancellation of registration on grounds of time limitation. The petitioner's registration was cancelled ex-parte without proper hearing date in the show cause notice, violating natural justice principles. The HC relied on Singh Group case precedent and found that government notifications had suspended limitation periods from March 2020 to August 2021. The Appellate Authority incorrectly rejected the appeal as time-barred when it was filed within the extended limitation period on September 18, 2021. The HC set aside the order and remitted the matter for fresh consideration treating the appeal as within limitation.

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Issues:
1. Appeal against the order of cancellation of registration dismissed as time-barred.
2. Violation of principles of natural justice in cancellation of registration.
3. Interpretation of limitation period for filing appeals in GST cases.

Analysis:
1. The petitioner challenged the order dismissing the appeal against the cancellation of registration as time-barred. The respondent upheld the cancellation, citing the appeal as beyond the limitation period. The petitioner argued that the order of cancellation was dated 9.8.2021, available on the GST portal, and no other cancellation order exists. The petitioner contended that the registration was cancelled ex-parte on 24.2.2019 without a fixed date of hearing, violating principles of natural justice.

2. The petitioner highlighted discrepancies in the show cause notice and the subsequent cancellation order, indicating a lack of procedural fairness. Reference was made to a similar case, M/S. Singh Group, where the court allowed the writ petition against a similar order. The court emphasized the importance of adherence to natural justice principles in such matters.

3. The court delved into the interpretation of the limitation period for filing appeals in GST cases. The petitioner argued that even if the cancellation order date was considered as 11.09.2019, the appeal filed on 18.09.2021 was within the limitation period. The petitioner relied on relevant orders and notifications to support the argument that the limitation period for seeking revocation of the cancellation order was extended up to 30.09.2021.

4. The court analyzed the government's intent in granting relaxation of limitation periods due to technical issues and external factors like the COVID-19 pandemic. It emphasized that such relaxation should apply uniformly to both revocation applications and appeal proceedings to avoid inconsistencies and ensure fairness. The court criticized the appellate authority for erroneously rejecting the appeal as time-barred and set aside the order, directing a fresh decision in accordance with the law.

In conclusion, the court allowed the writ petition, extending the benefit of a similar judgment to the present petitioner and directing the appellate authority to reconsider the appeal within the limitation period. The judgment emphasized the importance of procedural fairness, adherence to statutory remedies, and the uniform application of limitation periods in GST appeal cases.

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