Order Date – 06 February 2023

Parties: Sri Lakshmi Home Appliances Vs Union of India

Facts –

• The Petitioner, Sri Lakshmi Home Appliances, was issued with a show cause notice on 15.10.2018 for non-filing of GST return for a continuous period of six months. 
• The reply filed by the petitioner was found to be not satisfactory and accordingly, respondent No.5 passed the order dated 12.11.2018 cancelling GST registration of the petitioner.

Issue –

• Whether the cancellation of GST registration is in order?

Order –

• The divisional bench of Hon’ble High Court held that the issue is no longer res integra. In the case of M/s. Chenna Krishnama Charyulu Karampudi v. Additional Commissioner (Appeals-1), wherein it was held that though the lower appellate authority may be right in holding that while it may allow filing of an appeal beyond the limitation of three months for a further period of one month, therefore, by extension of limitation beyond the extended period of one month delay beyond the extended period of one month cannot be condoned, the Court was of the view that such a stand taken by Revenue may adversely affect the petitioner. This is more so because Revenue had suo motu cancelled the GST registration of the petitioner on the ground of non- filing of returns and as GST Tribunal has not been constituted under Section 109 of the CGST Act, petitioner would be left without any remedy.
• The same decision has been followed in subsequent decisions, hence this Court had remanded the matter back to the file of the primary authority to reconsider and pass appropriate order after giving opportunity of hearing to the petitioner.