2024 (5) TMI 171 - HC - GST

HC Reinstates GST Appeal After 128-Day Delay, Accepts Health Grounds and Directs Merits-Based Hearing

AP HC allowed a writ petition challenging GST registration cancellation. Despite statutory limitations on delay, the court exercised discretionary powers ... Condonation of delay - appellate authority's power to condone delay - statutory limitation for filing appeal under Section 107 of APGST Act - exercise of writ jurisdiction to do complete justice - appeal as a valuable statutory rightCondonation of delay - appellate authority's power to condone delay - exercise of writ jurisdiction to do complete justice - appeal as a valuable statutory right - Whether the delay of 128 days in filing the appeal against cancellation of GST registration can be condoned by the High Court notwithstanding that the statutory appellate authority lacks power to condone delay beyond the prescribed condonable period. - HELD THAT: - The petitioner's appeal against cancellation of GST registration under Section 107 of the APGST Act was filed beyond the statutory condonable period by 128 days. The appellate authority has no power to condone delay beyond the statutory condonable period, and the impugned cancellation order did not suffer from any illegality on its face. The petitioner, however, furnished affidavit evidence and Form GST APL-01 recording that the delay was due to serious health reasons (surgery and bed rest) and non-communication of the cancellation order, which the Court found to constitute sufficient cause. Recognising that an appeal is a valuable statutory right and that writ jurisdiction may be exercised to do complete justice and afford an opportunity to be heard on the merits, the High Court exercised its writ jurisdiction to condone the delay. As a condition for exercising that discretion, the Court imposed costs and directed that the appeal be considered and decided on merits by the appellate authority expeditiously after deposit of the costs within the prescribed time.Delay condoned in writ jurisdiction on showing of sufficient cause; direction to deposit costs of Rs. 20,000 and remit the appeal to the appellate authority for expeditious decision on merits.Final Conclusion: Writ petition allowed: delay in filing appeal condoned by the High Court in exercise of writ jurisdiction on account of sufficient cause (health-related incapacity), subject to payment of costs; appeal remitted to the appellate authority to be decided on merits expeditiously. Issues:The issues involved in the judgment are the cancellation of GST registration, rejection of appeal on the ground of limitation, and the condonation of delay in filing the appeal.Cancellation of GST Registration:The petitioner's GST registration was cancelled after a show cause notice. The appeal filed under Section 107 of the Andhra Pradesh Goods and Services Tax Act, 2017 was rejected as it was beyond the condonable period of 128 days. The statutory provision did not allow the appellate authority to condone the delay beyond the condonable period, resulting in the rejection of the appeal.Condonation of Delay:The petitioner cited health reasons for the delay in filing the appeal, stating that they were on bed rest due to surgery and were unaware of the cancellation order. Referring to a previous judgment, the petitioner sought condonation of the delay, emphasizing that there was sufficient cause for not filing the appeal within the statutory period.Judgment and Decision:The Court acknowledged the reasons presented by the petitioner for the delay and noted that while the impugned order was not illegal, the interest of justice required condonation of the delay. In the exercise of writ jurisdiction to ensure complete justice, the Court allowed the writ petition, condoned the delay by imposing a cost of Rs. 20,000, and directed the appellate authority to consider and decide the appeal on merits promptly. The costs were to be deposited within two weeks from the date of the order. No costs were awarded in the judgment.