TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>High Court Protects Traders' Livelihood: GST Registration Cancellation Overturned, Appeals Pathway Restored for Affected Business Owners</h1> <h3>M/s New Alert Security System Versus State of Rajasthan Assistant Commissioner, State Tax, Circle D, Udaipur (Raj.)</h3> HC ruled in favor of petitioners challenging GST registration cancellation. The court recognized the right to livelihood under Article 21 and granted ... Cancellation of registration of petitioner - appeal has been dismissed on the ground of same being time-barred - HELD THAT:- The controversy involved in this writ petition is squarely covered by the order passed by a Division Bench of this Court in POONAMCHAND SARAN S/O LATE MANGALRAM SARAN, MOHAN SINGH S/O LATE SHRI SALAM SINGH VERSUS UNION OF INDIA [2022 (10) TMI 180 - RAJASTHAN HIGH COURT] where it was held that Both the petitioners are given liberty to file appeal against the cancellation of their GST registration to the competent authority within ten days from today. Upon such appeals being filed, the same shall be considered and decided on all aspects in accordance with law excluding the bar of limitation in preferring the appeal by the petitioners. The present petition is disposed of in the same terms while quashing and set aside the impugned order dated 28.12.2023 (Annex.3). ISSUES PRESENTED AND CONSIDERED 1. Whether an appeal against cancellation of GST registration, dismissed or not filed for hyper-technical/non-submission of hard copy within prescribed time, can be entertained notwithstanding the bar of limitation where cancellation prevents the person from carrying on business and thereby affects livelihood protected under Article 21. 2. Whether the competent authority is required to grant a further opportunity to file and decide the appeal on merits, excluding the bar of limitation, where precedent authority of the Court squarely covers the controversy. 3. Whether prior High Court decisions relied upon by the petitioners operate as governing precedent in the facts before the Court and are to be followed. ISSUE-WISE DETAILED ANALYSIS Issue 1 - Entertaining appeals against cancellation of GST registration despite limitation where cancellation affects livelihood (Article 21) Legal framework: The statutory appeal against cancellation of GST registration must ordinarily be filed within thirty days, with a possible extension of a further thirty days; failure to file within the prescribed period attracts the limitation bar. Precedent Treatment: The Court followed a Division Bench order of this Court (reported below) and referred to several High Court decisions cited by parties which held that hyper-technical disallowance of appeal remedies causing denial of livelihood may warrant remedial relief. Interpretation and reasoning: The Court recognized that cancellation of GST registration disables a person from continuing business, producing loss of avenues of earning livelihood and affecting the right to life and liberty under Article 21. Where dismissal or non-filing of the appeal arises from hyper-technical reasons (such as inability to submit hard copy despite timely e-appeal or unavoidable reasons preventing filing), the consequences are severe and go beyond ordinary procedural default. Given those consequences and consistent judicial pronouncements, equitable relief is warranted to prevent deprivation of livelihood. Ratio vs. Obiter: Ratio - Where cancellation of GST registration deprives a person of livelihood and the failure to file or the dismissal of appeal is by reason of hyper-technicality/unavoidable circumstances, the Court may allow an additional opportunity to file appeal and direct the authority to decide it on merits excluding limitation. Conclusion: The Court set aside the impugned cancellation order and granted liberty to file appeal within a limited period; the authority was directed to decide the appeal on all aspects in accordance with law, excluding limitation. Issue 2 - Direction to competent authority to permit re-filing and decide appeal excluding limitation Legal framework: Administrative and appellate authorities under GST possess statutory competence to adjudicate appeals; judicial review can direct re-consideration where exercise of power produces injustice or violates fundamental rights. Precedent Treatment: The Court applied the direction contained in the earlier Division Bench order of this Court which granted petitioners liberty to file appeals within ten days and mandated decision without reliance on limitation; similar directions have been issued in other High Court decisions cited before the Court. Interpretation and reasoning: The Court concluded that, in the facts, the appropriate remedy is to set aside the impugned order and give a discrete, time-bound opportunity to file the appeal (ten days). The competent authority is to consider and decide the appeal on merit and in accordance with law, expressly excluding the bar of limitation as the sole ground to refuse adjudication, thereby effecting substantive adjudication rather than allowing hyper-technical forfeiture of rights. Ratio vs. Obiter: Ratio - A court may quash an order of cancellation and direct the appellate authority to entertain an appeal filed within a limited time and decide it on merits without being hamstrung by limitation, where the cancellation leads to deprivation of livelihood and prior judicial decisions support such course. Conclusion: The Court quashed the impugned cancellation order and directed re-filing within ten days, with the appellate authority to decide the appeal on all aspects in accordance with law excluding limitation. Issue 3 - Application and precedential effect of prior High Court decisions Legal framework: Decisions of coordinate benches and prior Division Bench orders of the same High Court are persuasive and binding in appropriate circumstances; courts may follow settled High Court precedents dealing with similar questions of law and fact. Precedent Treatment: The Court explicitly held that the controversy was squarely covered by a prior Division Bench order of this Court and acknowledged that other High Court judgments cited by the petitioners expound an identical legal proposition. The respondents did not dispute the applicability of that legal proposition. Interpretation and reasoning: Given the alignment of fact patterns and legal principles, and the concession that existing jurisprudence covers the controversy, the Court applied the precedent rather than distinguishing or overruling it. The reliance on precedent justified identical relief without re-litigating settled issues. Ratio vs. Obiter: Ratio - Where a prior Division Bench judgment of the same Court governs the question presented and facts are analogous, the later Bench will follow that order and grant similar relief. Conclusion: The Court followed the earlier Division Bench decision and disposed of the petition in the same terms, quashing the impugned order and directing re-filing and fresh adjudication. Cross-References and Operational Directions 1. The operative relief granted is time-bound: liberty to file the appeal within ten days from the date of the order. 2. Upon filing within the prescribed period, the competent authority must consider and decide the appeal on all aspects in accordance with law and shall not reject the appeal merely on the ground of limitation. 3. The remedy is grounded in protection of Article 21 interests where cancellation of GST registration causes deprivation of livelihood and where the failure to prosecute or the dismissal of appeal arises from hyper-technical or unavoidable circumstances; the approach follows and applies the Division Bench precedent.
TaxTMI 
TaxTMI 
