GST Registration Restored: Petitioner Wins Appeal Despite Procedural Challenges and Auditor's Demise

HC allowed petitioner's appeal challenging GST registration cancellation. Despite delay caused by auditor's demise and non-receipt of show cause notice, court exercised jurisdiction under Article 226 to condone delay. Court directed restoration of GST registration upon payment of outstanding dues, accepting petitioner's bonafide reasons for delay.

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Issues:
1. Delay in filing appeal due to untimely demise of Auditor.
2. Non-receipt of show cause notice leading to cancellation of GST registration.
3. Appeal for condonation of delay dismissed by appellate authority.
4. Jurisdiction of High Court to condone delay under Article 226 of the Constitution.
5. Justification for condoning delay based on bonafide reasons and unavoidable circumstances.

Analysis:
1. The petitioner sought relief to set aside the order dated 06.10.2022 and allow the appeal filed on 16.08.2022 due to the untimely demise of the Auditor, leading to delayed GST payments and non-receipt of the show cause notice, resulting in the cancellation of GST registration. The petitioner argued that the delay in filing the appeal should be condoned due to these circumstances.

2. The petitioner contended that the delay in filing the appeal was a result of not being aware of the show cause notice or the proceedings, as the notice was not received due to the spam filter in the email account. Consequently, the petitioner could not attend the personal hearing or respond to the notice, leading to the cancellation of GST registration by the respondent. The petitioner appealed for the restoration of GST registration.

3. The appellate authority dismissed the appeal, refusing to condone the delay beyond the prescribed period under Section 107 of the CGST Act. The petitioner approached the High Court, arguing that while the appellate authority may not have the power to condone the delay, the High Court can exercise its powers under Article 226 of the Constitution to condone the delay, citing relevant legal precedents.

4. The High Court acknowledged that the appellate authority lacked the power to condone the delay but emphasized that the Court could intervene under Article 226 of the Constitution. Considering the petitioner's explanation for the delay in filing returns and making payments, the Court accepted the reasons as genuine, justifying the condonation of delay and setting aside the impugned orders.

5. Ultimately, the High Court allowed the petition, setting aside the orders dated 06.10.2022 and 15.03.2022, directing the restoration of GST registration, and permitting the petitioner to file GST returns upon payment of outstanding dues. The Court's decision was based on a justice-oriented approach, accepting the petitioner's justifications for the delay and ordering relief accordingly.

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