Vishwas Enterprises Vs Commissioner (Appeals) of Central Goods And Service Tax (Rajasthan High Court)
The Rajasthan High Court allowed a writ petition challenging the dismissal of an appeal against cancellation of GST registration on the ground of limitation. The petitioner sought condonation of a delay of 720 days in filing an appeal against an Order-in-Original dated 08.07.2022, by which its GST registration had been cancelled. The appeal was filed on 25.10.2024 but was rejected by the Appellate Authority on 15.01.2025 because the authority lacked statutory power to condone such a delay under Section 107 of the GST Act.
The petitioner contended that the delay occurred due to unavoidable and bona fide circumstances beyond its control. It was submitted that the petitioner was facing severe financial hardship and acute shortage of funds during the relevant period, which adversely affected its ability to attend to legal and financial matters, including filing the appeal within the prescribed limitation period.
The petitioner further explained that an amount of ₹16,59,151 remained outstanding from a buyer against an invoice dated 16.03.2022, causing substantial financial constraints. Legal proceedings had already been initiated for recovery of the dues through the MSME Samadhan Online Portal before the Micro and Small Enterprises Facilitation Council, Udaipur. The petitioner stated that it now intended to regularize its business operations and sought restoration of GST registration to continue lawful business activities. According to the petitioner, the delay was neither deliberate nor caused by negligence but was the result of genuine financial difficulties.
