M/S. Mahadev Cotton Pressing vs. State Of Rajasthan

Held

The Court held that the respondents were required to decide the appeal filed by the petitioner on merits while condoning the delay, taking into consideration the overall facts and circumstances and the order dated January 10, 2022, passed by the Supreme Court. The Court reasoned that the Supreme Court's order provided a basis for extending the limitation period. Consequently, the writ petition was allowed, and the order dated January 5, 2022, passed by the Appellate Authority was set aside. The Appellate Authority was directed to decide the petitioner's appeal against the cancellation of GST Registration on merits expeditiously, treating the appeal as within limitation. The Court did not expressly leave any issue undecided.

Facts

The petitioner, M/s. Mahadev Cotton Pressing, had its GST registration cancelled by an order dated August 16, 2021. The petitioner was entitled to file an appeal under Section 107 of the CGST/RGST Act within three months, extendable by 30 days, meaning the deadline was December 15, 2021. However, the petitioner filed its appeal on January 3, 2022. The Appellate Authority dismissed this appeal on January 5, 2022, as time-barred. Subsequently, the Supreme Court, on January 10, 2022, passed a general order extending limitation periods for cases where the expiry fell between March 15, 2020, and February 28, 2022, granting 90 days from March 1, 2022, or the remaining balance period if longer. The petitioner applied to the Appellate Authority for revival of its appeal based on this Supreme Court order, but received no response, leading to the present writ petition.

Key Issues

1. Whether the Appellate Authority was required to decide the petitioner's appeal on merits, condoning the delay, in light of the Supreme Court's order dated January 10, 2022, extending limitation periods (Section 107 of the CGST/RGST Act)? The petitioner argued that the delay in filing the appeal was bonafide and that the respondents ought to condone the delay and decide the appeal on merits. The petitioner relied on a coordinate bench decision in Prakash Purohit Vs. The Commissioner, Central Goods and Service Tax & Ors. The respondents opposed the submissions made by the petitioner.