2024 (12) TMI 46 - HC - GST

GST registration cancellation upheld as petitioner missed 30-day appeal deadline without valid justification

Maa Vindhyavasini Impex Versus State Of Up And 2 Others

The Allahabad HC dismissed a petition challenging GST registration cancellation where the petitioner failed to file an appeal within the prescribed 30-day ... Condonation of delay in filing the appeal - Cancellation of registration of the petitioner - appeal against the cancellation of GST registration was filed within the prescribed limitation period - HELD THAT:- It is not in dispute that after service of the impugned order dated 04.03.2023, the appeal should have been preferred within limitation, but the appeal has been preferred beyond the limitation - Further, before this Court also, petitioner has failed to give any good ground for condonation of delay, therefore, this Court, under extra ordinary jurisdiction, cannot interfere with the impugned orders. The Apex Court in the case of Singh Enterprises Vs. Commissioner of C. Ex., Jamshedpur [2007 (12) TMI 11 - SUPREME COURT], has specifically held 'there is complete exclusion of Section 5 of the Limitation Act. The Commissioner and the High Court were therefore justified in holding that there was no power to condone the delay after the expiry of 30 days' period.' In the subsequent decision in Mafatlal Industries Ltd. & Ors. vs. Union of India & Ors. [1996 (12) TMI 50 - SUPREME COURT], this Court went on to observe that an Act cannot bar and curtail remedy under Article 226 or 32 of the Constitution. The Court, however, added a word of caution and expounded that the constitutional Court would certainly take note of the legislative intent manifested in the provisions of the Act and would exercise its jurisdiction consistent with the provisions of the enactment. To put it differently, the fact that the High Court has wide jurisdiction under Article 226 of the Constitution, does not mean that it can disregard the substantive provisions of a statute and pass orders which can be settled only through a mechanism prescribed by the statute. Thus, no interference is called for in the impugned orders - petition dismissed. Issues Involved:1. Whether the appeal against the cancellation of GST registration was filed within the prescribed limitation period.2. Whether the delay in filing the appeal can be condoned.3. Whether the High Court can exercise its jurisdiction under Article 226 to entertain the writ petition despite the existence of an alternative remedy.Issue-wise Detailed Analysis:1. Limitation Period for Filing Appeal:The primary issue in this case revolves around the appeal filed by the petitioner against the cancellation of GST registration. The appeal was filed beyond the prescribed limitation period. According to the facts presented, the petitioner's GST registration was canceled by an order dated 04.03.2023. The petitioner claimed to have become aware of this cancellation only in July 2024 and subsequently filed an appeal on 06.08.2024, accompanied by a delay condonation application. However, the appeal was dismissed on 30.08.2024 as it was filed beyond the period prescribed under Section 107 of the relevant Act. The court emphasized that the appeal should have been filed within the limitation period, and the petitioner failed to do so.2. Condonation of Delay:The court addressed the issue of whether the delay in filing the appeal could be condoned. The learned Standing Counsel for the State argued that the appeal was rightly dismissed as time-barred due to the absence of a proper explanation for the delay. The court referred to the Supreme Court's decision in Singh Enterprises Vs. Commissioner of C. Ex., Jamshedpur, which held that statutory authorities do not have the jurisdiction to condone delays beyond the permissible period provided under the statute. The court reiterated that the appellate authority could only condone a delay of up to 30 days beyond the initial 60-day period for filing an appeal. The petitioner failed to provide sufficient grounds for condonation of the delay, and therefore, the court could not interfere with the impugned orders.3. Jurisdiction of High Court under Article 226:The court examined whether it could exercise its jurisdiction under Article 226 of the Constitution to entertain the writ petition despite the existence of an alternative remedy. Citing precedents, the court noted that while the High Court has wide jurisdiction under Article 226, it should exercise self-imposed restraint and not entertain writ petitions when an effective alternative remedy is available. The court referred to the Supreme Court's decision in Assistant Commissioner (CT) LTU, Kakinada Vs. Glaxo Smith Kline Consumer Health Care Limited, which emphasized that the High Court should not bypass the statutory machinery when an alternative remedy is available. The court concluded that entertaining the writ petition would contravene the legislative intent and the statutory provisions governing the limitation period for appeals.Conclusion:In light of the facts and legal precedents, the court found no grounds to interfere with the impugned orders. The petitioner's failure to file the appeal within the statutory limitation period and the lack of sufficient cause for condonation of delay led to the dismissal of the writ petition. The court upheld the principle that statutory provisions regarding limitation periods must be adhered to, and the High Court's extraordinary jurisdiction under Article 226 should not be exercised to contravene such legislative mandates. Consequently, the writ petition was dismissed.