Delayed GST Registration Appeal Gets Second Chance: Procedural Fairness Trumps Strict Limitation Period Compliance

The HC addressed a GST registration cancellation appeal filed beyond the prescribed limitation period. Despite the delayed filing, the court remanded the matter to the appellate authority, directing a merit-based review within one month. The order quashed the appeal rejection, emphasizing procedural fairness and providing the petitioner an opportunity to present their case without imposing costs.

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Issues involved:
The rejection of appeal by the 2nd respondent on the ground of belated filing and the subsequent challenge in appellate proceedings.

Summary:
The petitioner, a registered person under GST laws, received a show cause notice threatening cancellation of GSTIN registration for non-filing of returns. Upon filing returns in response, the suspension of registration was revoked. However, a fresh order of cancellation was issued on 06.04.2023, leading to the appeal being rejected based on the limitation of filing.

The petitioner argued that returns were filed upon receipt of the show cause notice, making the subsequent order of cancellation unsustainable. It was also highlighted that the order showed no tax dues for the petitioner. The respondents pointed out that the appeal should have been filed by 05.08.2023 as the impugned order was issued on 06.04.2023, but it was actually filed on 01.09.2023.

The order dated 02.03.2023 indicated that the petitioner had filed pending tax returns and that the suspension of registration was revoked. The subsequent order of cancellation was based on the petitioner's failure to file GSTR-3B returns for six months, despite no tax dues being present. The appellate authority had the power to condone the delay if the appeal had been filed by 05.08.2023, and since it was filed on 01.09.2023 within a 30-day delay, the matter was remanded to the appellate authority for disposal on merits within one month.

Ultimately, the order rejecting the appeal was quashed, and the appellate authority was directed to consider the appeal on merits within a specified time frame, providing a reasonable opportunity to the petitioner. The writ petition was disposed of without any costs.

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