M/S Mukesh Gop vs. The Union Of INDIA

Held

The Court quashed and set aside the order dated July 22, 2022, passed by the Additional Commissioner of State Tax (Appeals), thereby remanding the appeal to the Appellate Authority for a fresh decision on merits. The Court accepted the petitioner's submission that ten percent of the total amount, a prerequisite for hearing the appeal, had been deposited. The Appellate Authority was directed to condone the delay in filing the appeal, considering the COVID-19 restrictions, and decide the appeal on merits after complying with the principles of natural justice. The Court also directed the de-freezing of the petitioner's bank accounts. The Court explicitly stated that it had not expressed any opinion on the merits of the case and all issues were left open for the Appellate Authority to decide. The Appellate Authority was instructed to pass a speaking order within two months from the petitioner's appearance.

Facts

The petitioner, M/s Mukesh Gop, a sole proprietorship firm, filed a writ petition challenging two orders. The first order, dated July 23, 2021, was passed by the Joint Commissioner of State Tax, Patna City West, cancelling the petitioner's GST registration ex-parte and without an opportunity of hearing. The second order, dated July 22, 2022, was passed by the Additional Commissioner of State Tax (Appeals), Patna East Division, rejecting the petitioner's appeal on grounds of limitation. The petitioner contended that the delay in filing the appeal was due to COVID-19 restrictions and that the registration cancellation was also ex-parte. The revenue stated it had no objection if the matter was remanded to the Appellate Authority for a fresh decision on merits, without considering the delay.

Key Issues

1. Whether the appeal filed before the Additional Commissioner of State Tax (Appeals) was barred by limitation, and if so, whether the delay was sufficiently explained. This issue turns on the interpretation and application of relevant provisions concerning the condonation of delay, particularly in light of the COVID-19 pandemic. The petitioner argued that the delay was attributable to COVID-19 restrictions and should be condoned. The revenue did not contest this point, agreeing to a remand where delay would not be a ground for rejection. 2. Whether the cancellation of GST registration by the Joint Commissioner of State Tax was valid, considering it was passed ex-parte and without affording an opportunity of hearing to the petitioner. This issue concerns the principles of natural justice and the procedural requirements for cancellation of registration under the GST Act. The petitioner argued that the order was ex-parte and violative of natural justice. The revenue agreed to a remand for a fresh decision on merits.