Limitation Not a Ground to Reject GST Registration Cancellation Appeal: Karnataka HC

Shivashakti Traders Vs Commercial Tax Officer (Karnataka High Court)

In this matter, the Karnataka High Court addressed the issue of GST registration cancellation and the effect of limitation on filing appeals. The petitioner, a proprietorship registered under the Central Goods and Services Tax Act, 2017 (CGST Act) and Karnataka Goods and Services Tax Act, 2017 (KGST Act), received a show-cause notice regarding why its GST registration should not be cancelled. The tax authority was not satisfied with the petitioner’s response and issued an order for cancellation. When the petitioner attempted to file an appeal under Section 107 of the CGST Act, it was rejected solely on the ground of delay.

The Court noted that identical issues had been addressed in several earlier judgments, including W.P. No.108419/2025, W.P. No.108239/2025, W.P. No.101618/2025, and W.P. No.107549/2024. In those cases, the Court permitted appeals to be filed despite delays, particularly when taxpayers had already discharged their tax liabilities. Applying consistent reasoning, the High Court held that appeals against GST registration cancellation cannot be dismissed solely for delay. The petitioner was allowed to file an appeal within four weeks from the date of the order, and the Appellate Authority was directed to consider the appeal on its merits rather than rejecting it on the basis of limitation.