M/S General Technocrats Private Limited Through One Of Its Directors Mohammad Shafiuddin vs. The Principal Commissioner Of CGST And Cx

Held

The Court noted that the petitioner's GST registration was cancelled under Section 29(2)(b) or (c) of the CGST Act for non-compliance with return filing requirements, and their subsequent appeal was rejected as time-barred under Section 107(1) and (4). However, the Court took into consideration Notification No. 03/2023-Central Tax, dated 31.03.2023, issued by the CBIC under Section 148 of the CGST Act. This notification provides a beneficial provision allowing registered persons whose registrations were cancelled on or before December 31, 2022, to apply for revocation of cancellation up to June 30, 2023, even if they failed to apply within the time specified in Section 30 or if their appeals were rejected on time-bar grounds. The Court found this notification to be beneficial and aimed at ameliorating difficulties faced by such registered persons. Therefore, the Court disposed of the writ petition with a direction to the petitioner to approach the proper officer with an application for revocation of cancellation of registration by June 30, 2023, in accordance with the conditions laid down in Notification No. 03/2023. The Court clarified that the impugned cancellation order and the appellate order would not impede the proper officer's consideration of the revocation prayer.

Facts

M/s General Technocrats Private Limited (Petitioner) filed a writ petition challenging the order dated 26.10.2022 passed by the Joint Commissioner (Appeals) (Respondent No. 2), which dismissed their appeal on grounds of delay. This appeal was against an order dated 09.03.2022 passed by the Superintendent of CGST & CX (Respondent No. 3) cancelling the Petitioner's GST registration for failure to furnish returns for six consecutive months. The Petitioner sought to quash both the appellate order and the cancellation order, arguing that the delay in filing the appeal was due to reasons beyond their control. The Petitioner also contended that Section 107(1) and 107(4) of the CGST Act, prescribing limitation periods for appeals, should not extinguish their right to appeal when prevented by circumstances beyond their control.

Key Issues

1. Whether the order dated 26.10.2022 passed by the Joint Commissioner (Appeals) dismissing the petitioner's appeal on grounds of delay, without considering the factual matrix preventing timely filing, is liable to be quashed, particularly in light of Section 107(1) and 107(4) of the CGST Act, 2017? Petitioner's Argument: The petitioner argued that the appellate authority failed to consider the reasons for the delay in filing the appeal, which were beyond their control. They contended that Section 107(1) and 107(4) should not be interpreted to completely bar an appeal when genuine reasons prevent timely filing. The petitioner also highlighted Notification No. 03/2023-Central Tax, issued by CBIC, which provides a window for revocation of cancelled GST registrations, including cases where appeals were rejected on time-bar grounds, and expressed readiness to avail this benefit. Revenue's Argument: The Respondent CGST acknowledged that a counter-affidavit was not filed due to awaited instructions. However, they agreed that the petitioner could avail the opportunity provided by Notification No. 3/2023 dated 31.03.2023 to seek revocation of cancellation of registration by following the prescribed conditions. They confirmed that the appeal was rejected as time-barred under Section 107(1) and (4) of the CGST Act.