Can Dismissal of the appeal of Revocation of cancellation/ proper opportunity of being heard of registration by the appellate authority in CGST Act,2017, after the expiry of the prescribed time limit in the Act?

Case Title

Amrendra Kumar Yadav, Son of Shri Yogendra Prasad Yadav, resident of Ward No. 6, Hariraha,

Rustampuri, P.O. Belahi Bhawanipur, P. S. Laukahi, Madhubani, Belahi Bhawanipur, Bihar-847108

Vs

1. State of Bihar through the Commissioner of State Tax, having its office at Vikas Bhawan, Bailey Road, Patna.

2. Dy. Commissioner of State Tax (Appeal), Darbhanga Division, Darbhanga, Bihar.

3. Deputy Commissioner of State Tax Jhanjharpur, Bihar.

Court

Patna High Court

Honorable Judges

Justice S Kumar

Citation

C.W.J. 2141of 2022
2022 (2) GSTPanacea 98 HC Patna

Judgement Date

14-February-2022

Council for Petitioner

Mr. D.V Pathy Adv.

 

 

Council for UOI

 

Council for State

Mr. Vikas Kumar SC 11

The Patna High Court bench of Chief Justice and Hon’ble  Justice S. Kumar has held that Assessee should be given a proper opportunity of being heard/presenting bonafied intention before dismissal of appeal of revocation of cancellation of registration.

FACTS OF THE CASE

Due to some assessment proceeding the Assessee could not file the return timely and hence the registration of Assesee was cancelled under section 30 of Bihar Goods and Services Tax Act,2017 by the Dy. Commissioner of Bihar Goods and Service Tax dated 8th Jan 2020, without giving him proper opportunity of being heard.

The Assessee made an appeal in form no GST Apl-02 dtd. 30th July 2021 to Add. Commissioner of State Tax( hereinafter called as Appellate Authority) to revocation of cancellation of registration and enable him to file due returns and pay tax as under Sec. 22 of GST Act,

The appeal of Assessee was cancelled only on the ground of delay in filing the appeal.

COURT HELD

The Court quashed and set aside the impugned order dated 8th Jan 2020 by Dy. Commissioner and the order dated 30th July 2021 by Add. Comm. Of State Tax Bihar.

The courts directed that Assessee shall appear before Assessing officer on dated 2nd Mar 2022 at 10:30 AM  by complying all the provisions of this Act

The court also directs that  Assessing Authority shall pass a fresh order only after giving adequate  opportunity of all concerned , Liberty shall be reserved to the petitioner if required, no corceive actions shall be taken against the petitioner during the proceedings also.

Writ petition accordingly disposed of, Interlocutory Application(s), if any, stands disposed off..

ANALYSIS OF THE JUDGEMENT

The registration of taxpayer cannot be cancelled under section 30 of CGST Act, 2017 only on the grounds of mere reasons; further if does so, the proper opportunity of being heard to be given.

Appeal of Assessee to the Appellate Authority can not be cancelled without hearing the matter only due to delay in filing the appeal.

Download PDF:

For Reference Visit:
Patna High Court