Order date – 15 December 2022

Facts –

• The Petitioner, BBCL Infrastructure, was in the business of bangles and an artificial ornament was initially registered with the taxing authorities under the Central Goods and Services Tax Act 2017.
• An appeal preferred by the petitioner on cancellation of GST registration, which has been rejected by a computer generated format order passed by the appellate authority on the same day i.e. 30.03.2022 on the ground of delay in submission of appeal.

Issue –

• Whether the appeal filed on the same day can be rejected on the ground of delay in submission of appeal?

Order –

• The Hon’ble High Court held that that the taxing authorities as well as the appellate authority should not pass orders in a mechanical manner, when it is dealing with the commercial and financial matter, which affects the revenue of the State.
• The cancellation of registration would only lead to more evasion of taxes at the hands of traders and businessman, as they are not going to stop their business but will proceed on some other fake name which will be difficult for the authorities to track. While dealing with the matters of cancellation of registration, the taxing authorities have to be more sensitive and patient.
• The officers of the taxing authorities should be more patient and extend every possible help for facilitation of the business and try to overcome the hurdles faced by the traders. Cancellation of the registration should be the last resort.
• The appellate authority should follow the principle of natural justice by affording opportunity of hearing to the assesse before taking any decision. The appeal should not be dismissed without due consideration of the ground taken in the appeal and the delay condonation application.
• Writ petition stands partly allowed.