M/S Mool Singh Baloo Singh vs. Appellate Authority

CW/18935/2022HC RajasthanGSTCNR RJHC01087085202212 January 2023Bench: SANDEEP MEHTA,KULDEEP MATHUR2 pages

AI SummaryRemanded

Facts

The petitioner, M/s Mool Singh Baloo Singh, a partnership firm, filed a writ petition challenging the order dated 28.03.2022 passed by the Appellate Authority. This order dismissed the petitioner's appeal against the cancellation of its GST registration. The petitioner contended that it was unable to pay GST on time due to financial difficulties during the COVID period, which led to the show cause notice and subsequent cancellation of its registration. The petitioner's appeal against this cancellation was dismissed by the Appellate Authority. The petitioner argued that this dismissal infringes upon its fundamental right to livelihood under Article 21 of the Constitution.

Held

The Court quashed and set aside the impugned order dated 28.03.2022 passed by the Appellate Authority. The matter was remanded to the Appellate Authority with a direction to treat the petitioner's appeal as filed within the period of limitation. The Appellate Authority is further directed to decide the appeal on its merits by a reasoned order within ten days from the date of submission of a copy of this order, after providing an opportunity of hearing to both parties. The Court found merit in the petitioner's submission that the dismissal of the appeal had severe consequences for its business and livelihood, and the respondent authorities did not oppose a reconsideration of the appeal.

Key Issues

1. Whether the dismissal of the petitioner's appeal against the cancellation of its GST registration, thereby preventing it from carrying on business, constitutes an infringement of its fundamental right to livelihood under Article 21 of the Constitution of India? Petitioner's Contention: The petitioner argued that the dismissal of its appeal by the Appellate Authority has directly infringed upon its fundamental right to earn a livelihood, as guaranteed by Article 21 of the Constitution. Therefore, the impugned order should be set aside, and its GST registration should be restored. Respondent's Contention: The respondent GST authorities did not object to the prayer for restoration and fresh consideration of the appeal on its merits.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR D.B. Civil Writ Petition No. 18935/2022 M/s Mool Singh Baloo Singh, A Partnership Firm, Having Office At 4F62 Near Indira Gandhi Park, Power House Road, Jodhpur Through Its Partner And Authorized Representative Mr. Surendra Singh S/o Mr. Mool Singh Aged Age About 45 Years R/o Sector 4F, Plot No. 62, New Power House Road, Jodhpur. ----Petitioner Versus 1. Appellate Authority, State Tax Room No. 204, Kar Bhawan, Collectorate, Jodhpur. 2. Asst. Commissioner / CTO, State Tax Work Contract And Leasing Tax, Collectorate, Jodhpur. ----Respondents For Petitioner(s) : Mr. Sharad Kothari For Respondent(s) : Mr. Hemant Dutt HON'BLE MR. JUSTICE SANDEEP MEHTA HON'BLE MR. JUSTICE KULDEEP MATHUR

Order 12/01/2023 The instant writ petition has been preferred under Article 226 of Constitution of India for assailing the order dated 28.03.2022 whereby, the appeal preferred by the petitioner against cancellation of its GST registration was dismissed. Learned counsel Shri Kothari representing the petitioner urged that the petitioner was prevented from making payment of GST on time because of financial crunch faced during the covid period. On this account, the respondents issued a show cause notice to the petitioner and have cancelled his GST registration. The petitioner filed an appeal against cancellation of GST

(2 of 2) [CW-18935/2022] registration which has been dismissed by the appellate authority vide order dated 28.03.2022. Shri Kothari, learned counsel representing the petitioner submits that dismissal of the petitioner’s appeal against cancellation of registration has resulted into the petitioner not being able to carry on his business and thus, this is a direct infringement of the fundamental right to earn livelihood as guaranteed by Article 21 of the Constitution of India. He thus, urged that the impugned order dated 28.03.2022 passed by the appellate authority deserves to be set aside and a direction be issued upon the respondents to restore the GST registration of the petitioner. Learned counsel Shri Dutt, representing the respondent GST authorities, does not object to the prayer for restoration and fresh consideration of the appeal on merits. In view of the above, the impugned order dated 28.03.2022 passed by the appellate authority is quashed and set aside. The matter is remanded to the appellate authority which shall treat the appeal filed by the petitioner to be within limitation and shall decide the same by a reasoned order within ten days from the date of submission of copy of this order after providing opportunity of hearing to the parties. The writ petition is disposed of in these terms (KULDEEP MATHUR),J (SANDEEP MEHTA),J 103-Sudhir Asopa/-

Reproduced from the public record of the Rajasthan High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.