Allowed

M/S. Mahadev Cotton Pressing v. State of Rajasthan

Rajasthan HC29 Nov 2023CW/2384/2022

Case brief

AI extract

What is this about?

The High Court allowed a writ petition directing the GST Appellate Authority to decide an appeal on merits without considering limitation, relying on a Supreme Court order extending limitation periods and condoning the petitioner's bona fide delay.

What did the court decide?

Order dated 5.1.2022 set aside; Appellate Authority directed to decide petitioners appeal on merits expeditiously while condoning delay and treating it within limitation.

M/S. Mahadev Cotton Pressing Vs State of Rajasthan — GST and Indirect Tax | Rajasthan HC (2023)

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[2023:RJ-JD:41205-DB]

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HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR

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D.B. Civil Writ Petition No. 2384/2022

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M/s. Mahadev Cotton Pressing, Through Its Partner Mrs. Kaushalya W/o Shri Budha Ram Saini (Age 28 Year), Having Principal Place Of Business At 993/5, Near Tolanadi, Jodhpur Road Bhopalgarh, Jodhpur-342603 (Rajasthan)

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----Petitioner

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Versus

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State Of Rajasthan, Through Joint Secretary (Tax) Finance Department (Tax Division), 1St Floor, Main Building, Gate-2, Government Secretariat, Jaipur, Rajasthan - 302005

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Commissioner, Commercial Taxes Department, Kar Bhawan, Ambedkar Circle, C-Scheme, Bhawani Singh Road, Jaipur, Rajasthan.

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Joint Commissioner, Circle-B, Jodhpur Ac/cto Ward, Jodhpur (Rajasthan)

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The Appellate Authority, Rajasthan Goods And Service Tax Jodhpur (Rajasthan)

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Goods And Service Tax Network (Gstn), Through Its Ceo, East Wing, Worldmark 1, 4Th Floor, Tower B, Aerocity, New Delhi - 110037

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----Respondents

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For Petitioner(s)	: Mr. Prateek Gattani
For Respondent(s)	: Mr. Hemant Dutt,
	Mr. Kuldeep Vaishnav,
	Mr. Sunil Bhandari

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HON'BLE MR. JUSTICE VIJAY BISHNOI HON'BLE MR. JUSTICE MUNNURI LAXMAN

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Judgment / Order

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29/11/2023

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This writ petition is filed by the petitioner claiming following reliefs :

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(2 of 4)

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[2023:RJ-JD:41205-DB]

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[CW-2384/2022]

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“1. In the aforesaid circumstances, the Petitioner most humbly pray before your Lordship:

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a. To issue writ of mandamus and/or any other appropriate writ(s) for directing the Respondents more particularly Respondent No.4 and Respondent No.5 to restore the Appeal filed by the Petitioner in Form GST APL-01 and accordingly decide the same on merit without considering the period of limitation for filing of appeal in terms of provisions of Section 107 of the CGST Act / RGST Act;

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b. To issue order(s), direction (s), writ(s) or any other relief(s) as this Hon’ble Court deems fit and proper in the facts and circumstances of the case and in the interest of justice;

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And for this act of kindness, the Petitioner shall, as in duty bound, ever pray.”

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Brief facts of the case are that the petitioner was registered under the GST Act, however, the said registration came to be canceled by the competent authority vide order dated 16.08.2021.

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Against the cancellation of registration, the petitioner has remedy to prefer appeal under Section 107 of the Central Goods and Service Tax Act, 2017 within three months from the date of cancellation of registration, which can be extended by a further period of 30 days. The petitioner had a period up to 15.12.2021 to prefer an appeal against the cancellation of GST registration before the Appellate Authority, however, the appeal was preferred by the petitioner on 03.01.2022.

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The appeal filed by the petitioner came to be dismissed on 5.1.2022 by the appellate authority treating it as time barred.

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Later on, the Hon’ble Supreme Court on 10.1.2022, while taking cognizance for Extension of Limitation (Miscellaneous Application No.21/2022 in MA 665/2021 in SMW(C) No.3/2020)

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(3 of 4) [CW-2384/2022]

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[2023:RJ-JD:41205-DB]

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has passed a general order and observed that in case where the limitation would have expired during the period between 15.03.2020 till 28.02.2022, all the affected persons shall have a limitation period of 90 days from 01.03.2022. The relevant portion of the order passed by the Hon’ble Supreme Court reads as under :

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“In cases where the limitation would have expired during the period between 15.03.2020 till 28.02.2022. notwithstanding the actual balance period of limitation remaining. all persons shall have a limitation period of 90 days from 01.03.2022. In the event the actual balance period of limitation remaining. with effect from 01.03.2022 is greater than 90 days. that longer period shall apply.”

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Pursuant to that, the petitioner has filed an application before the appellate authority for revival of the appeal, however, the appellate authority did not respond to the same. Hence, this writ petition.

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Learned counsel for the petitioner has submitted that the delay in filing the appeal was bonafide and the respondents ought to condone the delay and required to decide the appeal preferred by the petitioner against cancellation of GST registration on merits.

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Learned counsel for the petitioner has placed reliance on the decision of a Co-ordinate Bench of this Court dated 10.11.2022 passed in DB Civil Writ Petition No.16269/2022 – Prakash Purohit Vs. The Commissioner, Central Goods and Service Tax & Ors.

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Reply to the writ petition is filed on behalf of the respondents, wherein submissions made by learned counsel for the petitioner have been opposed.

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[2023:RJ-JD:41205-DB]

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[CW-2384/2022]

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(4 of 4)

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Taking into consideration the overall facts and circumstances of the case and keeping in view the order dated 10.1.2022 passed by the Hon’ble Supreme Court in Miscellaneous Application No.21/2022 in MA 665/2021 in SMW(C) No.3/2020, we are of the view that the respondents were required to decide the appeal filed by the petitioner on merits while condoning the delay.

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Resultantly, this writ petition is allowed and the order dated 5.1.2022 passed by the appellate authority is set aside. The appellate authority is directed to decide the appeal filed by the petitioner against cancellation of GST Registration on merits expeditiously while treating the same within limitation.

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Ordered accordingly.

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(MUNNURI LAXMAN),J

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(VIJAY BISHNOI),J

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95-DivyaTak/-

M/S. Mahadev Cotton Pressing v. State of Rajasthan

Case brief

What is this about?

What did the court decide?

M/S. Mahadev Cotton Pressing v. State of Rajasthan

Case brief

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What did the court decide?

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