GST Update No 342 on uploading order on GST portal is sufficient compliance

The debate and discussion as regards to cancellation of registration has touched the sky and has increased manifolds. There had been catena of cases wherein the High Courts have adopted a lenient approach and ordered for restoration of registration. However, it appears that the revenue authorities are reluctant enough to follow this principle in various cases. Looking at the other side of the coin, the taxpayers are also lethargic to prefer an appeal against the cancellation order in a timely manner. Recently, one such case was also reported before Madhya Pradesh High Court in the case of M/S YASH KRISHI SEVA KENDRA V/S STATE OF MADHYA PRADESH. The decision imparted in this case is subject matter of discussion of our present update.

The petitioner being a sole proprietor filed this petition under Article 226 of Constitution of India and prayed to set aside the impugned order for cancellation of registration. It was contended that the Joint Commissioner has grossly erred in rejecting the appeal being time barred. It was further argued that neither the show cause notice was issued as on 16.05.2018 not the order for cancellation of registration as on 04.03.2022 was communicated to them. Hence, no appeal could be preferred further. A rejoinder was submitted by petitioner placing reliance on a decision dated 25.02.2022 in a bunch of W.P. Nos. 21978/2019 by a Co-ordinate bench wherein an opportunity of preferring an appeal was given to assessee due to non-communication of order.

The counsel for the respondent submitted that show cause notice dated 16.05.2018 and order for cancellation of registration dated 06.06.2018 both were uploaded on the portal in terms of Section 169 of CGST Act, 2107.Hence, once the show cause notice and order for cancellation of registration is served on the portal, the same was available to the petitioner to be downloaded for the purpose of filing appeal. The relied upon documents were also submitted by the revenue department in support of their contentions. Further, reference to Section 169 of CGST Act, 2017 was also made wherein uploading of documents are mandatory to be served on portal. Hence, since the petitioner was well aware of the servicing of show cause notice and order on the portal, they cannot take advantage of the same. The ultimate liability is of petitioner only and therefore, no one else can be blamed.

The issue under consideration is non-communication of order to the petitioner within the period of limitation and hence, the petitioner was deprived of alternate remedy of appeal. The Court observed that revenue has communicated the order of cancellation of registration to the petitioner therein and hence, the period of limitation shall be counted from the date of knowledge of the impugned order and not from the date of communication. The present situation is different from the decision on which reliance is placed by the petitioner. Since the revenue department adhered to the provisions of Section 169 of CGST Act, 2017, they are nowhere at fault. Further, it was held that a show cause notice was also sent to petitioner on the mobile number as well as e-mail address. Hence the appeal filed by petitioner is time barred and the period of limitation cannot be extended further. The Court cannot divert from the statutory provisions and therefore, the petition is dismissed.

The above decision is a setback for the trade and industry showcasing the fact that now the assessees need to be more vigilant and cautious in exercising the statutory right of filing an appeal. There had been cases in the past as well wherein the order was delivered over the e-mail ID or portal which were recognised as a valid mode of servicing. The taxpayers should pay attention to all these judicial precedents and then only take necessary action otherwise the precious time of Courts will be wasted.

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GST Update No 342 on uploading order on GST portal is sufficient compliance

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