The Telangana High Court has remanded the matter for fresh adjudication since the GST registration was suo motu cancelled on non-filing of returns and as GST Tribunal has not been constituted under Section 109 of CGST Act,2017.
The goods and services tax (GST) registration of the petitioner has been cancelled on the ground that the petitioner had not filed GST returns for more than six months. The appeal filed by the petitioner before respondent No.1 against such a cancellation order has been rejected. The Petitioner is a proprietary concern engaged in the business of providing professional actress services.
Respondent No.2 issued a show-cause notice dated 15.04.2019 to the petitioner to cancel the registration on the ground that the petitioner had not filed GST returns for a continuous period of six months. Interestingly, the petitioner was directed to appear before respondent No.2 on 27.11.2018 which date had long expired much before the issuance of show cause notice on 15.04.2019.
It was observed that the order was passed by the first appellate authority under Section 107(1) of the CGST Act. As per subsection (1) of Section 107 of the CGST Act, the limitation for filing an appeal is three months from the date of communication of the order appealed against. Under subsection (4) of Section 107 of the CGST Act, the appellate authority may allow the appeal to be presented within a further period of one month, provided the sufficient cause is shown by the appellant.
It was evident that Respondent No.2 had suo motu cancelled the GST registration of the petitioner on the ground of non-filing of returns and as GST Tribunal has not been constituted under Section 109 of the CGST Act, the petitioner would be left without any remedy.
The Coram comprising Chief Justice Ujjal Bhuyan and Justice N Tukaramji set aside the order dated 22.07.2019 as well as the order dated 25.02.2022 and remanded the matter back to respondent No.3 to consider the grievance expressed by the petitioner against the cancellation of GST registration and thereafter pass an appropriate order following the law.
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