The Division Bench of the Delhi High Court set aside the cancellation of Goods and Service Tax (GST) registration, ruling that the assessee had provided sufficient reasons for the delay in filing the appeal, which should have been condoned.
The assessee has filed the present petition impugning an Order-in-Appeal dated 08.05.2024 whereby the petitioner’s appeal against the order dated 04.11.2023, whereby the petitioner’s petition for revoking the order canceling its GST Registration, was rejected on the ground of delay.
The cancellation order, apart from referring to the SCN, does not mention any reason for cancelling the petitioner’s GST registration. The assessee had applied for revocation of the cancellation order, however, the same was rejected by an order dated 04.11.2023.
The assessee’s appeal was delayed by six days; that is, it was six days beyond the stipulated period of three months provided under Section 107(1) of the CGST Act. Moreover, the petitioner provided the explanation for such delay. He submitted that the concerned GST officer has raised a ticket for rectification of the order dated 04.11.2023 under Section 161 of the CGST Act and the same was also communicated to the assessee. The assessee was thus hopeful that its grievance could be resolved by a rectification order.
The delay in filing the appeal could be condoned by the Appellate Authority. However, the Appellate Authority did not examine whether the assessee was prevented by sufficient cause in filing its appeal and failed to exercise its power for condoning the delay in filing the appeal.
The Court satisfied that the assessee had provided sufficient reasons for the delay in filing the appeal and the same ought to have been condoned.
The Coram of Justice Vibhu Bakhru and Justice Sanchin Datta set aside the impugned Order-in-Appeal dated 08.05.2024 and remand the matter to the Appellate Authority for consideration on merits. The Appellate Authority was requested to dispose of the appeal as expeditiously as possible and preferably within a period of six weeks from date. Accordingly, the petition was allowed.
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