Bihar High Court Affirms GST Registration Cancellation Due to Non-Filing of Returns
Rahul Kumar Vs Union of India through the Secretary (Patna High Court)
Facts:
- The petitioner contested the cancellation of their GST registration via an Annexure-3 order dated 14.01.2021.
- They argued that the show-cause notice issued on 29.12.2020 directed appearance on 24.12.2020, which they deemed impossible.
- The petitioner availed the appellate remedy but with significant delay.
Observations:
- Appellate Remedy and Delay:
- Section 107 of the Bihar Goods and Services Tax Act allows for an appeal within three months, extendable by one month for delay condonation.
- The Supreme Court extended limitation due to the pandemic from 15.03.2020 till 28.02.2022, allowing an appeal within ninety days from 01.03.2022.
- The petitioner filed the appeal on 06.12.2022, about five months after the limitation period expired.
- The court found no reason to employ Article 226 since alternate remedies were available, and the petitioner failed to act diligently.
- Procedural Irregularities:
- The notice displayed a hearing date prior to its issuance, yet the petitioner did not respond or request a further date.
- The petitioner did not file an appeal raising objections to the violation of natural justice principles, which should have been done by 30.07.2022.
- The reason for cancellation was the petitioner’s failure to file returns for six consecutive months, which they did not contest.
Conclusion:
- The court dismissed the writ petition, emphasizing the importance of timely compliance and utilization of legal avenues.
- The judgment underscores the consequences of non-compliance and the need for procedural regularity in administrative proceedings.
- Taxpayers are reminded to adhere to statutory requirements and exercise due diligence in challenging administrative actions.
This ruling serves as a reminder to taxpayers about the importance of timely compliance and utilizing legal avenues effectively.
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