GST Update No 344 on dismiss of GST appeal for delay of one day

It is commonly observed that the taxpayers fail to file appeal on timely basis which results into dismissal of appeal being time barred. Although there had been various cases in the past as well wherein Courts have adopted a lenient approach and delivered that filing of appeal should not be denied merely because of procedural lapses being a legislative right of assessee. Recently, on similar parameters one more case was reported before Himachal Pradesh High Court in the case of Sunil Kumar Vij V/s Union of India and others. The decision imparted in this case is subject matter of our present update.

The petitioner filed an appeal seeking relief in the nature of certiorari and mandamus on the grounds that the order was passed in gross violation of principles of natural justice. The appellant is a registered dealer under GST. A show cause notice dated 14.07.2020 was issued for cancellation of registration. The officers suo-moto cancelled GST registration vide order dated 28.07.2020 on the grounds that no return was filed by the assessee till date along with payment of tax. The tax officers rejected the application of revocation of registration applied by petitioner on account of being time barred by one day.

The Court observed the facts of the case and stated that they wonder as to how the departmental officers could have taken a hyper technical and pedantic view to hold that even a delay of one day would be fatal to the maintainability of the appeal. Furthermore, department is also vested with an authority to condone the delay. Reference was also made to various decisions which are:
•   M/s G.G. Agencies Girijeshwar Rice Mills V/s The State of Karnataka & Ors.
•   Vinod Kumar V/s Commissioner Uttarakhand State GST & Ors.
•   TVL. Suguna Cutpiece Centre V/s The Appellate Deputy Commissioner (ST) (GST)
•   M/s Trans India Carco Carriers V/s The Assistant Commissioner (Circle)
•   Poonamchand Saran V/s Union of India and Others
It was further held that in case of cancellation of registration, the petitioner would not be able to continue business in absence of GST registration and hence, would be deprived of his livelihood which results into violation of right to life and liberty as per Article 21 of the Constitution of India. Therefore, it was directed to condone the delay in filing of appeal by the departmental officers and decide the same on the merits.

The above decision is once again another favourable decision wherein the Courts have acknowledged the vested right of livelihood of the taxpayers failing which will create a loss-loss situation for the taxpayers and tax officers. It is high time that Judicial Rulings like these should be followed at the earliest possible so as to avoid any further unnecessary litigations on the subject matter. Further, proper guidelines from the Government’s end is anticipated at the earliest possible to curb these issues.

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GST Update No 344 on dismiss of GST appeal for delay of one day

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