Background and Context
The petitioner, a proprietary concern engaged in trading chemical products and registered under the Gujarat Goods and Service Tax Department, challenged the cancellation of its GST registration. The registration was cancelled by order dated 01.01.2022 following a show-cause notice alleging issuance of invoices without actual supply of goods or services. The petitioner filed an appeal against this cancellation on 06.06.2022, which was dismissed by the appellate authority on the ground that it was filed beyond the limitation period prescribed under Section 107 of the Central Goods and Service Tax Act, 2017 (CGST Act).
Legal Issue
The central issue before the Gujarat High Court was whether the appeal filed by the petitioner was time-barred under Section 107(4) of the CGST Act, considering the exclusion of limitation periods as directed by the Supreme Court in the context of the COVID-19 pandemic.
Submissions
The petitioner argued that, pursuant to the Supreme Court’s order in Suo Motu Writ Petition (C) No. 3 of 2020, the period from 15.03.2020 to 28.02.2022 should be excluded from the computation of limitation for all judicial and quasi-judicial proceedings. Accordingly, the limitation period for filing the appeal should have commenced from 01.03.2022, making the appeal filed on 06.06.2022 within the permissible extended period of 120 days (comprising 90 days under Section 107(1) and an additional 30 days under Section 107(4)).
The respondent, represented by the Assistant Government Pleader, contended that the appeal was filed beyond the statutory period of 120 days from the date of the cancellation order and that neither the appellate authority nor the High Court could condone the delay beyond this period.
Court’s Reasoning and Decision
The High Court examined the relevant dates and the Supreme Court’s directions regarding exclusion of the COVID-19 period for limitation purposes. The Court observed that the order cancelling the registration was passed on 01.01.2022, and the appeal was filed on 06.06.2022. In line with the Supreme Court’s order dated 10.01.2022, the period from 15.03.2020 to 28.02.2022 must be excluded for limitation purposes. Therefore, the limitation period for filing the appeal commenced on 01.03.2022, and the 120-day period would expire on 30.06.2022.
The Court held that the appeal was filed within the extended period of 120 days, and thus, the appellate authority had the discretion to condone the delay if satisfied with the reasons provided by the petitioner. The appellate authority’s refusal to entertain the appeal on the ground of limitation was found to be erroneous.
Outcome and Directions
The Gujarat High Court set aside the impugned order of the appellate authority and remanded the matter for reconsideration. The appellate authority was directed to examine the reasons for the delay (beyond 90 days but within 120 days) and, if satisfied, to condone the delay and hear the appeal on merits. The Court clarified that it had not expressed any opinion on the merits of the case or the sufficiency of the reasons for delay. The appellate authority was instructed to pass an appropriate order within 12 months from the date of receipt of the High Court’s order.
The writ petition was partly allowed to this extent, with no order as to costs.
Case Reported at:
Case Name: Marvin Enterprise v. State of Gujarat and Ors.
Case Citation: (2026) taxcode.in 1001 HC
