Limitation for GST appeal ran from 01.03.2022 after COVID-19 exclusion, making the appeal within the condonable period.

The limitation period for an appeal against GST registration cancellation was held to run from 01.03.2022, because the COVID-19 period from 15.03.2020 to 28.02.2022 stood excluded for limitation in judicial and quasi-judicial proceedings. On that basis, an appeal filed on 06.06.2022 fell within the 120-day condonable window under the CGST Act, so the appellate authority erred in treating it as time-barred beyond condonable delay. The rejection on limitation was quashed and the matter remanded for consideration of condonation and decision on merits.

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Issues: Whether the appeal against cancellation of GST registration was filed within the permissible period of limitation in view of the exclusion of the COVID-19 period, and whether the appellate authority erred in treating the appeal as beyond condonable delay under Section 107 of the Central Goods and Service Tax Act, 2017.

Analysis: The relevant limitation period was held to commence from 01.03.2022 because the period from 15.03.2020 to 28.02.2022 stood excluded for limitation purposes in all judicial and quasi-judicial proceedings. On that basis, the appeal filed on 06.06.2022 fell within the extended window of 120 days. The appellate authority had proceeded on the erroneous premise that the appeal was beyond the period during which delay could be condoned. Since the filing was within the condonable period, the authority retained discretion to consider the explanation for delay and decide the appeal on merits.

Conclusion: The rejection of the appeal on limitation was quashed, and the matter was remanded to the appellate authority to consider condonation and thereafter decide the appeal on merits.

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