Cancellation of GST Registration Certificate by Mistake of Accountant: Madras HC Condones Delay [Read Order]

The Madras High Court condoned the delay in filing the appeal as the petitioner’s GST Registration Certificate was cancelled due to the mistake committed by the accountant.

The petitioner, M/s. Sathya Furnitures, approached the Court belatedly seeing as the impugned order has been passed under the provisions of the Tamil Nadu Goods and Services Tax Act, 2017 (‘Act’) and an appeal ought to have been filed under Section 107 within a period of 120 days (90 + an extended period of 30 days) within which condonation may have been sought; no condonation is available thereafter. Admittedly, and as of date, the delay is one week shy of four months.

In such cases, it calls upon the Court to examine whether there was any justification available for having approach this Court belatedly and only then consider intervening.

The petitioner in the affidavit has stated that due to the mistake of the accountant, my registration certificate was also cancelled by the then officer who had issued the show cause notice and that the delay in not filing the appeal under the Act or the delay in approaching the Honourable Court was neither wilful nor wanton.

The Court of Dr Justice Anita Sumanth noted that “That apart, incidentally, though being a point on merits, this has not weighed with the Court in intervening in the matter, the very validity of Section 16(4) of the Act in terms of which the respondent has reversed input tax credit has been challenged and is pending consideration, though not at the instance of the petitioner.”

The Single Bench further went on to state that the petitioner may be permitted to approach the appellate authority before whom all conditions for entertaining the appeal such as pre-deposit would be applicable. If appeal is filed within a period of one week from today, it shall be entertained without reference to limitation but ensuring compliance with all other requirements including pre-deposit.

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