Trust's GST registration cancellation upheld after failing to file returns and missing appeal deadline

The HC dismissed a writ petition challenging GST registration cancellation. The petitioner trust failed to file mandatory returns for six consecutive months and did not respond to the show cause notice within the stipulated period. Registration was cancelled in November 2022. The subsequent appeal filed in December 2023 was dismissed due to delay beyond the three-month statutory limitation period under Section 107 of CGST Act. The court upheld both the cancellation order and appellate authority's dismissal, finding no grounds for interference given the petitioner's non-compliance with statutory requirements and significant procedural delays.

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Issues:
Challenge to cancellation of GST registration without opportunity to be heard, appeal dismissal on grounds of limitation period, restoration of GST registration certificate, denial of principles of natural justice.

Analysis:

The petitioner, a trust engaged in social activities, received a show cause notice on 07.10.2022 regarding the cancellation of GST registration. The petitioner failed to reply within the stipulated period, and the registration was canceled on 16.11.2022 without a hearing. The subsequent appeal filed on 05.12.2023 was dismissed on 26.07.2024, citing a delay beyond the limitation period under Section 107 of the CGST Act.

The petitioner contended that the cancellation was unjust as the registration was suspended on the same day as the show cause notice, denying the principles of natural justice. Despite the petitioner's failure to reply within the deadline, the cancellation order claimed the reply was considered. The appellate authority upheld the cancellation based on the limitation period, not the merits, leading to the plea for quashing the cancellation and restoring the GST registration.

The respondent argued that the cancellation was justified as the petitioner failed to comply with the mandatory return filing requirements under Section 39 of the CGST Act. The petitioner's non-compliance led to the issuance of the show cause notice and eventual cancellation, warranting no interference with the decision.

The court noted that although no reply was filed by the petitioner, the failure to furnish returns for six consecutive months was established. The appeal dismissal was upheld due to the significant delay of over a year beyond the statutory three-month appeal period. Consequently, the court found no grounds to challenge the cancellation or the appellate order, emphasizing the petitioner's non-compliance and delay in filing the appeal.

In conclusion, the court dismissed the writ application, citing the petitioner's failure to meet statutory requirements and the significant delay in filing the appeal. The cancellation of the GST registration and the dismissal of the appeal were upheld, with no justification for interference.

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