Ex Servicemen Welfare Association vs. The State Of Bihar

Held

The Court held that the appeal filed by the petitioner before the Additional Commissioner of State Tax was rightly dismissed on the ground of limitation, as there was a delay of fifteen months in filing the appeal. The Court noted that a plea not taken before the Appellate Authority, such as the non-receipt of the cancellation order, cannot be raised for the first time through oral submission in the High Court. The Court found no reason to interfere with the impugned orders. The writ application was dismissed. However, the Court clarified that the dismissal would not prevent the petitioner from pursuing other statutory remedies, including an appeal before the GST Appellate Tribunal or making a fresh application for registration.

Facts

The petitioner, Ex Servicemen Welfare Association, sought to quash the order cancelling its GST registration dated January 31, 2023, passed by the Joint Commissioner of State Tax, and the subsequent order dated April 24, 2024, passed by the Additional Commissioner of State Tax, which rejected its appeal on grounds of limitation. The petitioner, a non-profit organization for ex-army personnel, failed to file its GST return for the financial year 2022-23 due to the prolonged illness of its Administrative Secretary. The petitioner claims it did not receive the show-cause notice for cancellation, thus not being afforded an adequate opportunity to be heard. The appeal against the cancellation order was filed approximately fifteen months after the order was passed.

Key Issues

1. Whether the cancellation of the petitioner's GST registration by the Joint Commissioner of State Tax was valid, considering the petitioner's claim of not receiving the show-cause notice and thus not being provided an adequate opportunity of hearing, as per the principles of natural justice? 2. Whether the Additional Commissioner of State Tax was justified in rejecting the petitioner's appeal on the sole ground of limitation, given the fifteen-month delay in filing the appeal against the cancellation order? Petitioner's Arguments: The petitioner contended that the show-cause notice for cancellation was not received, leading to a lack of proper opportunity for hearing. They also argued that the appeal was dismissed solely on limitation, and since the GST Appellate Tribunal was not constituted at the time of filing the writ, they sought liberty to withdraw the writ to file an appeal before the Tribunal. They further submitted that there was no tax liability as they are a non-profit organization. Revenue's Arguments: The State argued that the Appellate Authority correctly dismissed the appeal on grounds of limitation. They presented documentary evidence, including SMS and email trails from GSTN, Delhi, indicating that show-cause notices were sent on November 9, 2022, and cancellation confirmation emails/SMS were sent on January 31, 2023, refuting the petitioner's claim of non-receipt.