Prakash Purohit vs The Commissioner, CGST, Jaipur

Can GST Laws over rule Article 21 of Constitution of India? Can GST Laws restrict Fundamental Rights provided by the Constitution of India? Can Cancellation of GST Registration deprive person of right to life and liberty as enshrined in Article 21 of the Constitution?

Facts of the case: GST Registration of the Petitioner was cancelled on 11-Apr-2022 Appeal against cancellation of the GST registration can be filed within three months which can be extended by a further period of one month. Appeal filed on 27-Sep-2022, rejected on 28th Appeal was rejected on the basis of being time barred on 28-Sep-2022 Assessee filed Writ Petition before High Court against this Rejection Order.

Rajasthan High Court held as follows: The Petitioner has been left remediless for hyper-technical reason of the appeal against cancellation of GST registration not being filed in time. The petitioner herein would not be able to continue with his business in absence of GST registration and thus, would be deprived of his livelihood which amounts to violation of right to life and liberty as enshrined in Article 21 of the Constitution of India. Rejection Order of 28-Sep-22 is quashed High Courts have been favouring Assessee for GST Registration Similar decisions were given by High Courts in cases of 

1) TVL. Suguna Cutpiece Centre vs. The Appellate Deputy Commissioner (ST) GST Madras High Court.

2) Vinod Kumar Vs. Commissioner Uttarakhand State GST – Uttarakhand High Court.

Heard learned counsel for the parties and perused the material available on record. The petitioner was dealer registered under the GST Act. The registration of the petitioner came to be cancelled by the competent authority vide order dated 11.04.2022.

It is not disputed that appeal against cancellation of the GST registration can be filed within three months which can be extended by a further period of 30 days. The petitioner filed the e-appeal on 27.09.2022 but could not submit the hard-copy. The petitioner has challenged the order dated 28.09.2022 whereby his appeal has been dismissed on the ground of same being time-barred.

Learned counsel Shri N.S. Rajpurohit placed reliance on the following judgments rendered by various High Courts:- 

1. M/s G.G. Agencies Girijeshwar Rice Mill vs The State of Karnataka & Ors. (Writ Petition No.15344 of 2022, decided on 18.08.2022)

2. Vinod Kumar Vs. Commissioner Uttarakhand State GST & Ors. : 2022 (7) TMI 128 – Uttarakhand High Court (Special Appeal No.123 of 2022)

3. TVL. Suguna Cutpiece Centre vs. The Appellate Deputy Commissioner (ST) (GST), The Assistant Commissioner (Circle), Salem Bazaar : 2022 (2) TMI 933 – Madras High Court

4. M/s Trans India Carco Carriers Vs. The Assistant Commissioner (Circle) W.P. Nos.18537 of 2022 and etc. – Madras High Court.

and urged that the petitioner has been left remediless for hyper-technical reason of the appeal against cancellation of GST registration not being filed in time. He contended that owing to cancellation of GST registration, the petitioner is being deprived of the opportunity of doing business which has resulted into loss of all avenues of earning livelihood and is violative of right to life and liberty as guaranteed by Article 21 of the Constitution of India. He thus, urges that one more opportunity deserves to be given to the petitioner to file the appeal in the proper format and the competent authority may be directed to decide such appeal as per law. 

Shri Dutt and Shri Vaishnav vehemently and fervently opposed the submissions advanced by the petitioner’s counsel. However, they too is not in a position to dispute the fact that the legal proposition as expounded by various High Courts in the judgments referred to supra, covers the controversy at hand. It cannot be denied that the petitioner herein would not be able to continue with his business in absence of GST registration and thus, would be deprived of his livelihood which amounts to violation of right to life and liberty as enshrined in Article 21 of the Constitution of India.

In this background, the order dated 28.09.2022 is set aside. The petitioner is given liberty to file appeal against the cancellation of GST registration to the competent authority within ten days from today. Upon such appeal being filed, the same shall be considered and decided on all aspects in accordance with law excluding the bar of limitation in preferring the appeal by the petitioner. With the above observations and directions, the writ petition is disposed of.

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