GST Update

Desk of CA. Praveen Sharma – 891 Series (CAPS)

Karnataka High Court – Rahul Computers Case

The petitioner challenged two orders before the High Court: one cancelling the GST registration and another rejecting the appeal filed against such cancellation.

The tax authorities had issued a show-cause notice proposing cancellation of GST registration. After considering the reply as unsatisfactory, the registration was cancelled.

The petitioner filed an appeal under Section 107 of the CGST Act. However, the appellate authority dismissed the appeal only on the ground of delay and did not examine the matter on merits.

The High Court observed that similar matters had already been decided earlier, where delayed GST appeals were permitted to be filed even though the appellate authority itself had no power to condone delay beyond the statutory period.

In earlier cases, the High Court had allowed taxpayers to file delayed appeals and directed that such appeals be decided on merits if filed within the time granted by the Court.

Following the same reasoning, the Court set aside the order rejecting the appeal and granted the petitioner another opportunity to file the appeal.

The appellate authority has been directed to consider the appeal on merits and not reject it on the ground of limitation. All factual and legal issues have been kept open for both parties to raise during the fresh hearing.

link: CA. Praveen Sharma on Linkedin

Regards
CAPS