M/S Maa Tara Rani Construction vs. The State Of Bihar

Facts

The petitioner, M/s Maa Tara Rani Construction, is challenging the cancellation of its GST registration, which was upheld by an appellate order. The appeal was dismissed on 07.01.2023, primarily because it was filed beyond the prescribed limitation period and the appellate authority declined to condone the delay under Section 107(4) of the Bihar Goods and Services Tax Act, 2017. The petitioner relies on a Government of India Notification No. 03/2023 dated 31st March, 2023, issued by the Central Board of Indirect Taxes and Customs, to seek relief. The revenue contended that the appeal was rejected for being time-barred, not for failing to adhere to the time limit under Section 30(1) of the Act.

Held

The Court held that the petitioner is entitled to the benefit of Notification No. 03/2023 dated 31st March, 2023. The Court found no exclusion in the Notification for cases where an application for revocation of cancellation was rejected, and the subsequent appeal under Section 107 of the Act was delayed. The Explanation to the Notification clearly states that it applies to persons whose appeals against orders of cancellation or rejection of revocation applications have been dismissed on the ground of failure to adhere to the time limit specified under Section 30(1) of the Act. The Court reasoned that when a defaulter is enabled the benefit, it should also be available to those who availed the appellate remedy but failed to file the appeal within the specified time under Section 107. Consequently, the Court set aside the appellate order (Annexure-1) and directed the petitioner to comply with the Notification, upon which they would be entitled to its benefits. The writ petition was allowed.

Key Issues

1. Whether the petitioner is entitled to the benefit of Notification No. 03/2023 dated 31st March, 2023, issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board of Indirect Taxes and Customs, despite their appeal against the cancellation of registration being dismissed on grounds of limitation under Section 107 of the Bihar Goods and Services Tax Act, 2017. The petitioner argued that the Notification, read with its Explanation, extends the benefit to persons whose appeals against orders of cancellation of registration, or orders rejecting applications for revocation of cancellation, have been rejected on the ground of failure to adhere to the time limit specified under Section 30(1) of the Act. They contended that the Notification does not exclude cases where an appeal was filed against a rejection and was itself dismissed for delay under Section 107. The revenue argued that the appeal was rejected for being time-barred under Section 107, and not specifically for failure to adhere to the time limit under Section 30(1) of the Act, implying the Notification might not be applicable.