M/S Jyoti Structures Limited vs. Union Of INDIA

Held

The Court held that the appeal filed by the petitioner before the appellate authority was indeed barred by limitation. The primary reason for this finding was the petitioner's failure to file an application for revocation of registration cancellation within the extended periods provided by the Removal of Difficulties (ROD) orders and subsequent notifications/circulars. The Court noted that despite these opportunities, the petitioner directly filed an appeal against the cancellation order, which was significantly delayed (over 1.5 years). The Court found that the ROD dated 25.06.2020 and the notification dated 29.08.2021, along with the clarificatory circular dated 06.09.2021, permitted applications for revocation, but the petitioner did not avail this remedy. Furthermore, the circular concerning IBC companies, dated 23.03.2020, was not applicable as the registration cancellation order was passed on 04.09.2019, prior to the circular's issuance. Consequently, the appellate authority had no power to condone the inordinate delay. The Court found the impugned order of the appellate authority to be fair, reasonable, proper, and justified. The writ petition was dismissed.

Facts

The petitioner, M/s Jyoti Structures Limited, filed a writ petition challenging an order dated 30.09.2021 passed by the Additional Commissioner (Appeals), Raipur. This order rejected the petitioner's appeal, filed under Section 107 of the Central Goods and Service Tax Act, 2017, solely on the grounds of limitation. The original order of cancellation of registration was passed by the competent authority on 04.09.2019. The appeal was required to be filed within three months, with a possible extension of one month for justifiable grounds, making the deadline approximately 04.01.2020. However, the petitioner filed the appeal only on 22-26.07.2021, over 1.5 years after the cancellation order. The petitioner attempted to rely on various Removal of Difficulties (ROD) orders and circulars issued by the Central and State Governments concerning the revocation of registration and extensions for companies under IBC, but the Court noted these did not assist the petitioner as no revocation application was filed within the extended periods.

Key Issues

1. Whether the appeal filed by the petitioner before the appellate authority was barred by limitation under Section 107 of the Central Goods and Service Tax Act, 2017, considering the delay of over 1.5 years in filing it after the order of cancellation of registration dated 04.09.2019. Petitioner's arguments: The petitioner contended that various Removal of Difficulties (ROD) orders and circulars, including those dated 25.06.2020, 29.08.2021 (Notification No.34/2021-Central Tax), and 06.09.2021 (State Government circular), provided an opportunity to move an application for revocation of registration cancellation, even for those whose applications were rejected or appeals were pending/decided. They also relied on Circular No.134/04/2020-GST dated 23.03.2020, which stated that companies under IBC could not have their registration cancelled. Respondents' arguments: The respondents, through their counsel, argued that the petitioner failed to avail the remedy of revocation within the extended periods granted by the RODs and circulars. They further pointed out that the cancellation order predated the circular concerning IBC companies, rendering it inapplicable. The appellate authority correctly rejected the appeal on grounds of inordinate and unexplained delay, as it lacked the power to condone such a significant delay.