Case Law Details
Vaishnavi Enterprises Vs State of Bihar (Patna High Court)
The Patna High Court dismissed the writ petition filed by Vaishnavi Enterprises challenging the cancellation of its GST registration under the Bihar Goods and Services Tax Act, 2017 (BGST Act). The petitioner’s registration was canceled by an order dated May 14, 2023. An appeal was required to be filed within three months, with a possible one-month extension for delay condonation. However, the petitioner filed the appeal only on March 20, 2024—well beyond the permitted time frame. Consequently, the appellate authority rejected the appeal as time-barred.
Additionally, the Bihar government had introduced an Amnesty Scheme allowing businesses to restore canceled registrations upon payment of dues between March 31, 2023, and August 31, 2023. Vaishnavi Enterprises did not avail of this option. The court noted that the petitioner had received the show-cause notice but failed to act in a timely manner. Given the availability of alternative remedies and the petitioner’s lack of diligence, the court refused to exercise its extraordinary jurisdiction under Article 226. Upholding the principle that legal relief favors the diligent, the High Court dismissed the writ petition.
FULL TEXT OF THE JUDGMENT/ORDER OF PATNA HIGH COURT
The petitioner is aggrieved with the cancellation of registration by Annexure P/1 order passed on 14.05.2023, against which an appeal was filed which was rejected as delayed, on 20 03.2024 at Annexure P/2.
2. Section 107 of the Bihar Goods and Services Tax Act, 2017 (“BGST Act” hereafter) permits an appeal to be filed within three months and also apply for delay condonation with satisfactory reasons within a further period of one month. Here, the order impugned in the appeal was dated 14.05.2023. An appeal was to be filed on or before 12.08.2023 and if necessary with a delay condonation application within one month thereafter, i.e. on or before 11.09.2023. The appeal is said to have been filed only on 20.03.2024, after the limitation period expired.
3. Further, the Government had come out with an Amnesty Scheme by Circular No. 3 of 2023, by which the registered dealers, whose registrations were cancelled were permitted to restore their registration on payment of all dues between 31.03.2023 to 31.08.2023. The petitioner did not avail of such remedy also.
4. The petitioner does not have any case that the show-cause notice was not received by him.
5. In the above circumstances, we find no reason to invoke the extraordinary jurisdiction under Article 226, especially since it is not a measure to be employed where there are alternate remedies available and the assessee has not been diligent in availing such alternate remedies within the stipulated time. The law favors the diligent and not the indolent.
6. The writ petition would stand dismissed.
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