Railsys Engineers Private Limited Vs Additional Commissioner of Central Goods and Services Tax (Appeals-II) & Anr. (Delhi High Court)
The Hon’ble High Court, New Delhi in the matter of Railsys Engineers Private Limited & Anr v. The Additional Commissioner of Central Goods and Services Tax [W.P.(C) 4712/2022 dated July 21, 2022] sets aside order cancelling Goods and Services Tax (“GST”) registration, and held that Supreme Court suo moto extension of limitation period is applicable for filing appeal against cancellation.
Facts:
The present petition has been filed against the Order-in Appeal (“the Impugned OIA”) passed by the Revenue Department (“the Respondent”) wherein a Show Cause Notice (“SCN”) and order was passed in order to cancel the GST registration of the Railsys Engineers Private Limited & Anr (“the Applicant”) mainly on the following grounds:
1. The limitation period stood extended by various orders passed by the Supreme Court in Cognizance for Extension of Limitation [Suo Motu W.P(C.) No.3/2020 dated March 23, 2022].
2. The SCN, ordering to cancel the GST registration, is an unsigned order which directed the appearance of the Petitioner without indicating the venue where the proceedings would be conducted.
- The order canceling registration did not bear the signature of the concerned authority.
- Rule 68 of the Central Goods and Services Tax Rules, 2017 (“the CGST Rules”) required the Respondent to issue a notice to the Petitioners concerning the non-filing of returns for the period in issue, which the Petitioners did not file their return, spans between February, 2019 and November, 2019.
Respondent’s Contention:
The period of non-filing the returns being prior to Covid-19 kicking in, the orders passed by the Supreme Court in Cognizance for Extension of Limitation [Suo Motu Writ Petition No.3/2020 dated March 23, 2022] will not be applicable in the Petitioners’ case.
Issue:
