Retrospective Cancellation of GST Registration Invalid When Based on Vague SCN: Calcutta HC Orders Restoration [Read Order]
Orissa High Court set aside the rejection of the GST appeal filed two days late, holding that medical reasons justified the condonation of the delay
Retrospective Cancellation, GST Registration, Calcutta High Court
Retrospective Cancellation, GST Registration, Calcutta High Court
In a recent ruling, the Orissa High Court held that a GST appeal filed with a delay of two days should not have been rejected without considering the assessee’s explanation of medical treatment, and directed the matter to be restored before the Appellate Authority.
Sunrise Coke Enterprises Pvt. Ltd., the petitioner, had been assessed under Section 73 of the Odisha GST Act, 2017 for the period 2020–21, resulting in a demand of Rs. 56,364 by order dated 22 November 2024. The petitioner filed an appeal on 24 February 2025, two days after the expiry of the three-month limitation period.
The Appellate Authority issued a notice dated 3 March 2025 seeking a reply, but the petitioner, who claimed to be under medical treatment, could not respond. By order dated 29 April 2025, the appeal was rejected.
The petitioner’s counsel argued that the delay was minimal, within the condonable period under Section 107(4) of the GST Act, and occurred due to reasons beyond the petitioner’s control. They further argued that the Appellate Authority should have considered the request and given an opportunity to explain the circumstances.
The State’s counsel argued that the petitioner failed to respond to the notice issued by the Appellate Authority and that rejection of the appeal was justified.
The Division Bench comprising Chief Justice Harish Tandon and Justice Murahari Sri Raman observed that there was no material placed by the department to dispute the genuineness of the petitioner’s claim.
The court explained that the petitioner should be given one more opportunity to justify the delay, as sufficient cause appeared to exist for filing the appeal two days beyond the stipulated time.
The court set aside the rejection order dated 29 April 2025 and directed the petitioner to appear before the Appellate Authority on or before 10 October 2025 and file a response to the notice dated 3 March 2025. The court further directed that if such explanation is filed, the authority must consider it after affording an opportunity of hearing. The writ petition was disposed of accordingly.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
