2022 (12) TMI 818 - HC - GST

GST Registration Appeal Restored: Procedural Delays Invalidated, Natural Justice Principles Upheld for Petitioner's Livelihood Rights

Sunil Kumar VIJ Versus Union of India and others

HC allowed petitioner's writ challenging GST registration cancellation, finding procedural delay in appeal processing unjustified. The court directed ... Maintainability of appeal - rejection on the ground of one day’s delay - revocation of cancellation of CGST registration - violation of the principles of natural justice - HELD THAT:- It cannot be disputed that the petitioner would not be able to continue with his business in absence of GST registration and thus would be deprived of his livelihood which amounts to violation of his right to life and liberty as enshrined under Article 21 of the Constitution of India. In this background, the order dated 29.08.2022 is set aside. The delay in filing of appeal before respondent No.2 stands condoned and respondent No.2 shall now decide the appeal on its merits. The parties are left to bear their own costs. The writ petition is disposed off. Issues:1. Quashing of order due to delay in appeal processing.2. Authority to condone delay in appeal filing.3. Violation of right to life and liberty due to cancellation of GST registration.Issue 1: Quashing of order due to delay in appeal processingThe petitioner filed a petition seeking a writ to quash an order dated 29.08.2022 issued by respondent No.2, which rejected an appeal on the grounds of a one-day delay. The court observed that the rejection was a violation of natural justice as the appeal was not decided on merit due to the delay. The court set aside the order dated 29.08.2022 and condoned the delay in filing the appeal. It directed respondent No.2 to now decide the appeal on its merits. The parties were left to bear their own costs, and the writ petition was disposed of.Issue 2: Authority to condone delay in appeal filingThe court noted that respondent No.2 did not have the authority to condone the delay in the appeal filing. The court referred to various orders passed by different High Courts to support this observation. It cited cases such as M/s G.G. Agencies Girijeshwar Rice Mill vs. The State of Karnataka, Vinod Kumar Vs. Commissioner Uttarakhand State GST, TVL. Suguna Cutpiece Centre vs. The Appellate Deputy Commissioner, and M/s Trans India Carco Carriers Vs. The Assistant Commissioner. The court highlighted that the delay in filing the appeal should not have been considered fatal to its maintainability.Issue 3: Violation of right to life and liberty due to cancellation of GST registrationThe petitioner, a GST-registered dealer, received a show cause notice for cancellation of registration due to non-filing of up-to-date returns and tax payments. The GST registration was cancelled, and the application for revocation was rejected. The court emphasized that the cancellation of GST registration could deprive the petitioner of their livelihood, violating their right to life and liberty under Article 21 of the Constitution of India. In light of this, the court set aside the order, condoned the delay, and directed a reevaluation of the appeal on its merits to ensure justice and protection of fundamental rights.In conclusion, the High Court of Himachal Pradesh, through a detailed analysis, addressed the issues of quashing an order due to a delay in appeal processing, the authority to condone delay in appeal filing, and the violation of the right to life and liberty arising from the cancellation of GST registration. The judgment emphasized the importance of upholding natural justice, legal precedents, and fundamental rights in the context of administrative decisions impacting individuals' livelihoods.