M/S Mohammad Qayum Ansari vs The Principal Commissioner Of Cgst & Cx on 3 April, 2023

1. Outcome
The writ petition was disposed of. The High Court directed the petitioner to approach the proper officer for revocation of the cancellation of their GST registration by June 30, 2023, in accordance with the special procedure outlined in Notification No. 03/2023-Central Tax dated March 31, 2023. The Court clarified that the previously issued order of cancellation of registration and its affirmation in appeal would not impede the proper officer from considering the petitioner's application for revocation under this new notification.

2. Core Issue
The core issue was whether a registered person, whose GST registration was cancelled for non-filing of returns and whose appeal against such cancellation was rejected as time-barred, could avail the benefit of the newly introduced special procedure under Notification No. 03/2023-Central Tax for revocation of cancellation of registration.

3. Key Facts
* The petitioner, M/s Mohammad Qayum Ansari, had their GST registration cancelled on October 7, 2021 (Form GST REG-19) by the Respondent No. 3 (Superintendent of CGST & CX) for failure to furnish returns for a continuous period of six months, under Clause (b) or (c) of Section 29(2) of the CGST Act, 2017.
* The petitioner's appeal against the cancellation order was dismissed by the Respondent No. 2 (Joint Commissioner (Appeals)) on December 8, 2022 (released December 12, 2022), on the grounds of being time-barred, as it was filed beyond the limitation period prescribed under Section 107 of the CGST Act.
* The petitioner filed a writ petition seeking to quash both the original cancellation order and the appellate order, and also challenged the restrictive nature of the limitation periods under Sections 107(1) and 107(4) of the CGST Act.
* During the pendency of the writ petition, Notification No. 03/2023-Central Tax, G.S.R. 246(E), was issued by the C.B.I.C. on March 31, 2023.

4. Arguments (Taxpayer vs Revenue)
* Taxpayer (Petitioner):
* The appeal against the cancellation order was dismissed due to delay, but there were factual reasons beyond the petitioner's control that prevented timely filing.
* Sections 107(1) and 107(4) of the CGST Act should not be interpreted to restrict the right to appeal for reasons beyond control.
* Notification No. 03/2023-Central Tax, issued on March 31, 2023, provides a beneficial window for revocation of cancellation of registration. This notification covers cases where registration was cancelled on or before December 31, 2022, and explicitly includes persons whose appeals were rejected due to time limits.
* The petitioner is willing to comply with the conditions of the notification, including furnishing all pending returns and paying all due tax, interest, penalty, and late fees.
* The impugned orders (cancellation and appellate dismissal) should be set aside to allow the petitioner to avail this beneficial provision.
* Revenue (Respondents - CGST):
* Though a counter affidavit was not filed, the counsel conceded that the petitioner may avail the opportunity provided by Notification No. 03/2023-Central Tax.
* The original appeal was indeed rejected as time-barred under Sections 107(1) and (4) of the CGST Act.

5. Court’s Reasoning
* The Court took judicial notice of Notification No. 03/2023-Central Tax dated March 31, 2023, issued under Section 148 of the CGST Act.
* It observed that this notification provides a "beneficial" window of opportunity for registered persons whose registrations were cancelled under Section 29(2)(b) or (c) on or before December 31, 2022, to apply for revocation of cancellation up to June 30, 2023.
* The notification explicitly states that it covers persons who failed to apply for revocation within the time specified in Section 30, and significantly, "includes a person whose appeal against the order of cancellation of registration or the order rejecting application for revocation of cancellation of registration under section 107 of the said Act, has been rejected on the ground of failure to adhere to the time limit specified under sub-section (1) of section 30 of the said Act."
* The Court found that the petitioner's case squarely falls within the ambit of this Explanation, as their appeal against the cancellation was rejected as time-barred under Section 107(1) and (4) of the CGST Act.
* Considering the beneficial nature of the notification, intended to ameliorate difficulties faced by such registered persons, the Court decided that the petitioner should be allowed to avail this special procedure after complying with the prescribed conditions (furnishing returns and payment of dues).
* The Court concluded that the impugned orders should not be an impediment to the proper officer considering such an application under the new notification.

6. Statutory References
* Central Goods and Services Tax Act, 2017 (CGST Act):
* Section 29(2)(b) or (c) (Cancellation of registration)
* Section 30 (Revocation of cancellation of registration)
* Section 30(1) (Time limit for revocation application)
* Section 107 (Appeals to Appellate Authority)
* Section 107(1) (Limitation period for appeal)
* Section 107(4) (Extension of limitation period)
* Section 148 (Power to issue notifications for special procedures)
* Notification No. 03/2023-Central Tax, G.S.R. 246(E), dated March 31, 2023 (issued by the CBIC under Section 148 of CGST Act).
* Form GST REG-19 (for order of cancellation of registration).

7. Precedents Cited
No specific judicial precedents were cited or relied upon by the Court in this judgment, as the decision was primarily based on the interpretation and application of the new statutory notification.