In the case of New India Biz Chem (P.) ltd. vs. Assistant Commissioner of State Tax ([2021] 133 taxmann.com 317 (Gujarat) [09-09-2021]), the assessee is engaged in the business of manufacturing and selling chemicals, having principal place of business in Vadodara, Gujarat.

The assessee accidentally applied for cancellation of registration on 03-04-2021 on account of discontinuation of business. On the very same day the order of cancellation was issued by the competent authority in Form GST REG-19, wherein the registration of the assessee under GST was cancelled with effect from 31st March, 2021.

The assessee attempted to file an appeal online against the order of cancellation of GST so that it could discharge the tax liability. Since his registration was cancelled by himself, he was not allowed to file any appeal online as the self-cancellation of registration had debarred him from applying online.

Therefore, he filed an appeal manually under section 107 of the CGST Act in Form of APL-01 on 10th August, 2021. However, a personal hearing has not been scheduled in the case as the department stated that any action can be taken only when the appeal is filed electronically through GST Portal.

Further, the assessee also sent reminders on 13th August, 2021 and 18th August, 2021. According to the assessee both these communications dated 13th August, 2021 and 18th August, 2021 were not replied to.

Basis the above, it can be summarised that there has been a self-cancellation of registration on the part of the assessee, which has made him ineligible for online appeal, which otherwise is permissible under section 107 of the CGST Act.

As per Section 107 of the CGST Act, an appeal has to be filed within three months from the date on which the assessment order is communicated.

Further, Section 30 also provides for revocation of cancellation of registration for which according to the assessee the necessary communication has already been provided to the authority concerned. The difficulty on the part of the assessee is that if the assessee is not allowed to rectify the return in the form of GSTR-1 and GSTR-3B on or before the due date of filing of the return under section 39 of the CGST Act, the recipient will not be in a position to avail the input tax credit even though the taxes on such transactions have already been paid to the Government by Chalan dated 23rd August, 2021.


It was held that as the appeal is already filed physically, to which no reply has been communicated to the assessee, the Court directed the Competent Authority as follows:

  1. Reply to the two communications dated 13th August, 2021 and 18th August, 2021 of the assessee for the purpose of revocation of the self-cancellation of registration made by the assessee;
  2. Alternatively, the competent authority is asked to dispose of the appeal bearing in mind the time line of 30th September, 2021, which would not permit utilisation of input tax credit beyond the period of one year;
  3. In the eventuality of giving technicality, the competent authority should guide in writing to enable the assessee to prefer the appeal online within a short period of two weeks.

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