Time-barred appeal against GST cancellation order can’t be rejected due to absence of tribunal: HC

Case Details: Southern Enterprises v. Appellate Joint Commissioner ST - [2023] 148 taxmann.com 414 (Telangana)

Judiciary and Counsel Details

• • Ujjal Bhuyan, CJ. & N. Tukaramji, J.

Facts of the Case

The petitioner was proprietorship firm engaged in the business of sale and offering service of air conditioners. The department show cause notice (SCN) to the petitioner to show cause as to why GST registration should not be cancelled for non-filing of GST returns for a continuous period of six months.

The petitioner submitted reply but the department cancelled GST Registration due to non-filing of GST returns for continuous period of six months. It filed appeal against order of cancellation of registration but it was rejected solely on ground that appeal was filed not only beyond period of limitation but also beyond extended period of limitation. Thereafter, it filed writ petition before the High Court.

High Court Held

The Honorable High Court noted that the lower authority has rightly denied the appeal filed beyond the limitation period but this decision would adversely affect the business of petitioner. Since, GST Tribunal has not been constituted under Section 109 of CGST Act, 2017; the petitioner would be left without any remedy especially when it would pertain to cancellation of GST Registration. Therefore, the Court remanded matter back to department for fresh decision in accordance with law after providing reasonable opportunity of hearing to petitioner.