M R Traders Vs Union of India (Rajasthan High Court)
The petitioner, a registered firm under the CGST Act, 2017 and RGST Act, 2017, challenged the cancellation of its GST registration and the subsequent dismissal of its appeal as time-barred. The registration was cancelled by an Order-in-Original dated 09.03.2023 on the ground of non-filing of GST returns for six months, with retrospective effect from 01.04.2022. The petitioner filed an appeal under Section 107 of the CGST Act on 18.12.2023, which was delayed by approximately 160 days beyond the prescribed limitation period. The appellate authority dismissed the appeal solely on the ground of limitation.
The petitioner contended that the delay was due to bona fide reasons, including reliance on an accountant/advocate for GST compliance, lack of communication, and personal difficulties arising from the illness of the petitioner’s father. It was argued that the delay was neither intentional nor negligent, and that a litigant should not suffer for the fault of counsel. The petitioner further contended that while the appellate authority is bound by the limitation prescribed under Section 107, the High Court retains powers under Article 226 of the Constitution to condone delay in appropriate cases to prevent injustice. It was also argued that denial of appeal on technical grounds affects the right to carry on business and livelihood.
