Assessee cannot be deprived of its livelihood by cancelling the GST registration.

Facts of the Case: –

• The Petitioners are dealers under GST Act, their registration was cancelled by the competent authority vide orders dated 09.09.2022 (passed in SBCWP No.14521/2022) and 09.05.2022 (passed in SBCWP No.14524/2022).
• It is not in dispute that appeal against cancellation of registration can be filed in 30 days which can be extended by a further period of 30 days. The Petitioner Poonam Chand Saran filed the e-appeal within time, however, could not submit the Hard Copy of the same.  On the other hand, The Petitioner Mohan Singh failed to submit appeal against the cancellation of registration order dated 09.05.2022.
• In the present petitions, the Petitioner Poonam Chand Saran has challenged the order dated 09/09/2022, dismissing his appeal on the ground of being time-barred. The Petitioner Mohan Singh has raised the grievance of not being able to file an appeal on account of unavoidable reasons.

Petitioner’s Submissions: –

• Reliance was placed on 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); Vinod Kumar Vs. Commissioner Uttarakhand State GST & Ors. : 2022 (7) TMI 128 – Uttarakhand High Court (Special Appeal No.123 of 2022); TVL. Suguna Cutpiece Centre vs. The Appellate Deputy Commissioner (ST) (GST), The Assistant Commissioner (Circle), Salem Bazaar- Madras High Court; M/s Trans India Carco Carriers Vs. The Assistant Commissioner (Circle) W.P. Nos.18537 of 2022 and etc. – Madras High Court, on the behalf of the petitioners to submit that the petitioners have been left remediless for hyper-technical reasons of appeal against GST registration cancellation not being filed in hard-copy/in time.
• The petitioners are being deprived of the opportunity of carrying on the 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.
• It was urged that one more opportunity deserves to be given to the petitioners to file the appeal in the proper format and the competent authority may be directed to decide such appeal as per law.

On the other hand, the submissions made by the petitioners were vehemently opposed on the behalf of the respondent, however, the fact has not been disputed that the  legal proposition as explained by various High Courts in the judgments referred to supra, covers the controversy at hand.

Held: –

• The Hon’ble Court after considering the submissions made and facts of the case, found that it cannot be denied that the petitioners would not be able to continue their business in absence of GST registration and thus, would be deprived of their livelihood which amounts to violation of right to life and liberty as enshrined in Article 21 of the Constitution of India.

The Hon’ble Court with the above findings set aside the order dated 09.09.2022 passed in the case of Poonamchand Saran (Writ Petition No.14521/2022), with a liberty to the petitioners to file appeal against the cancellation of their GST registration to the competent authority within ten days from that day.  Upon such appeals 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 petitioners.

To read the complete judgment 2022 Taxo.online 1025