Judicial Review Allows GST Registration Appeal Despite Limitation Period, Mandates Reconsideration Within 90 Days

SC examined a GST registration cancellation case involving a Society's failure to submit returns. The court found the appeal's dismissal on limitation grounds did not preclude judicial review. Recognizing the petitioner's bona fide reasons, the SC set aside the cancellation order and remitted the matter to the original authority for reconsideration, directing a decision within three months.

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Issues involved:
The issues involved in the judgment are the cancellation of GST registration of the petitioner due to failure to submit returns, dismissal of appeal by the Appellate Authority as barred by limitation, and the petitioner seeking revocation of the GST cancellation.

Cancellation of GST Registration:
The petitioner failed to submit GST returns for six months due to inoperative email ID, leading to cancellation of GST registration. The petitioner, a Society supplying food supplements to Anganwadi Centres and schools, filed a statutory appeal which was dismissed as barred by limitation. The petitioner expressed willingness to pay pending tax along with interest and avail Input Tax Credit. The petitioner sought revocation of the cancellation, arguing that the original authority's order should be set aside and the matter remitted back for consideration.

Dismissal of Appeal and Legal Merger:
The Appellate Authority dismissed the appeal as barred by limitation without examining the merits of the claim for revocation of GST cancellation. The dismissal of an appeal as barred by limitation does not result in a legal merger of the original authority's order with the appellate order. Therefore, the original authority's order remains challengeable under Article 226 of the Constitution of India.

Judicial Review and Revocation of GST Cancellation:
The Court held that it retains jurisdiction to examine the legality of the original authority's order under Article 226 of the Constitution of India, despite the dismissal of the appeal by the Appellate Authority. Considering the petitioner's bona fide reasons for the delay in filing returns, the Court found it just to set aside the impugned order and remit the matter back to the original authority for reconsideration of the claim for revocation of GST cancellation. The petitioner was granted the opportunity to present pleadings and documents to the authority for further proceedings.

Conclusion:
The Court allowed the petition, setting aside the order of cancellation of GST registration. The matter was remitted back to the original authority for reconsideration of the petitioner's claim for revocation. The petitioner was directed to appear before the authority on a specified date, with the authority instructed to pass appropriate orders within three months of the appearance.

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