GST Registration Cancellation: Diet Contractor Directed to File Appeal Within One Week Under Section 107 CGST Act

HC of Andhra Pradesh addressed a GST registration cancellation challenge involving a diet contractor supplying food to government hospitals. The court disposed of the writ petition, directing the petitioner to file an appeal within one week before the appellate authority. The judgment emphasized statutory procedural compliance, allowing the petitioner to seek remedy through administrative channels under Section 107 of CGST Act within four weeks.

---

---

Issues:
Challenge to cancellation of registration under Section 29 of the Central Goods and Services Tax Act, 2017.

Analysis:
The petitioner, a diet contractor supplying food to Government General Hospitals at subsidized prices, challenged the cancellation order of registration by the Goods and Services Tax Officer. The petitioner contended that the supplies were taxable at 5% under the GST Act and had been reporting and discharging tax liability since December 2018. Due to delays in receiving bills from the government, the petitioner failed to file returns for several months. The petitioner highlighted financial difficulties faced, including non-payment by hospitals despite bill acceptance. The petitioner expressed willingness to comply with tax obligations if given another chance. The government, opposing the petition, argued that the petitioner failed to respond to the show-cause notice and utilize the remedy under Section 107 of the CGST Act, hence challenging the petition's maintainability.

The Court noted Section 107 of the CGST Act, allowing aggrieved parties to appeal decisions within three months. Considering the petitioner's contentions and submissions, the Court disposed of the Writ Petition, permitting the petitioner to approach the appellate authority within a week. The Court directed the appellate authority to consider any appeal filed within four weeks and pass appropriate orders in accordance with rules. The judgment emphasized the importance of following statutory procedures and availing prescribed remedies, such as the appellate process under Section 107 of the CGST Act, before seeking judicial intervention. The Court's decision aimed to uphold procedural fairness and adherence to legal frameworks in tax matters, ensuring parties exhaust administrative remedies before resorting to judicial review.

In conclusion, the High Court of Andhra Pradesh addressed the challenge to the cancellation of registration under the CGST Act, emphasizing the significance of statutory appeal mechanisms. The judgment underscored the necessity for parties to exhaust administrative remedies before seeking judicial redress, promoting adherence to legal procedures and due process in tax-related disputes. The Court's decision balanced the petitioner's contentions with legal requirements, providing an opportunity for appeal while upholding the statutory framework governing tax matters.

---