ORDER

The petitioner by filing this petition has prayed for the following reliefs:

“i. That this hon’ble Court may please to quash and set aside the order dated 04/01/2022 passed by respondent No.2 and order dated 04/02/2022 passed by respondent No.3 and further pleased to direct for restoration of registration of the petitioner.

ii. Any other relief which this Hon’ble Court deem fit may also is granted”.

2. The facts as canvassed in the memorandum of Writ Petition reveal that the petitioner is a service provider, registered with GST, Kymore, District Katni. Registration of petitioner was canceled vide order dated 04/02/2019 (Annexure P/1). Thereafter, with the delay of 865 days, he preferred an appeal before the Joint Commissioner, GST State, (Appeal), Jabalpur, i.e. the Appellate Authority also dismissed the appeal vide order dated 04/01/2022 and thus the petitioner has filed this petition assailing the order of cancellation of the registration as well as the order passed by the Appellate Authority.

3. Learned counsel for the petitioner submits that the impugned orders are bad in the eyes of law inasmuch as the same have been passed in complete ignorance of the circular dated 25/06/2020 issued by the Government of India, Ministry of Finance (Department of revenue), Central Board of Indirect Taxes and Customs (Annexure P/6). Learned counsel submits that while taking note of the scheme of Section 29 of the Central Goods and Services Tax Act 2017 (hereinafter referred to as “Act of 2017”) the Central Government provided relaxation to the registered persons whose registrations were canceled, to apply for revocation. Thus, submits that in this view of the matter, the appeal of the petitioner could not have been dismissed as he was also entitled for the relaxation in terms of the circular dated 25/06/2020. The petitioner also submits that he is also entitled for the relaxation as provided by the Apex Court in the matter cognizance for extension of Limitation orders in SMW(C) No.3/2020.

4. Per contra, learned counsel for respondents submits that the petition infact is misconceived since the order impugned is sought to be challenged on the grounds which are not available to the petitioner. It is also submitted by the learned counsel for the respondents that the reliance on circular dated 25/06/2020 (Annexure P/6) is mis-placed and thus has prayed that the petition deserve to be dismissed.

5. We have considered the rival contentions and submissions so put-forth before us.

6. To appreciate the rival submissions, it is appropriate to refer Section 29 and Section 107 of Act of 2017.

Section 29:- Cancellation [or suspension of registration-

“1) The proper officer may, either on his own motion or on an application filed by the registered person or by his legal heirs, in case of death of such person, cancel the registration, in such manner and within such period as may be prescribed, having regard to the circumstances where,––

(a) the business has been discontinued, transferred fully for any reason including death of the proprietor, amalgamated with other legal entity, demerged or otherwise disposed of; or

(b) there is any change in the constitution of the business; or

(c) the taxable person, other than the person registered under subsection (3) of section 25, is no longer liable to be registered under section 22 or section 24.

2 “(c) the taxable person is no longer liable to be registered under section 22 or section 24 or intends to optout of the registration voluntarily made under sub-section (3) of section 25:”.

Provided that during pendency of the proceedings relating to cancellation of registration filed by the registered person, the registration may be suspended for such period and in such manner as may be prescribed.

(2) The proper officer may cancel the registration of a person from such date, including any retrospective date, as he may deem fit, where,––

(a) a registered person has contravened such provisions of the Act or the rules made thereunder as may be prescribed; or

(b) a person paying tax under section 10 has not furnished returns for three consecutive tax periods; or

(c) any registered person, other than a person specified in clause (b), has not furnished returns for a continuous period of six months; or

(d) any person who has taken voluntary registration under sub-section (3) of section 25 has not commenced business within six months from the date of registration; or

(e) registration has been obtained by means of fraud, wilful misstatement or suppression of facts:

Provided that the proper officer shall not cancel the registration without giving the person an opportunity of being heard.

Provided further that during pendency of the proceedings relating to cancellation of registration, the proper officer may suspend the registration for such period and in such manner as may be prescribed.”

Section 107:-Appeals to Appellate Authority

(1) Any person aggrieved by any decision or order passed under this Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act by an adjudicating authority may appeal to such Appellate Authority as may be prescribed within three months from the date on which the said decision or order is communicated to such person.

(2) The Commissioner may, on his own motion, or upon request from the Commissioner of State tax or the Commissioner of Union territory tax, call for and examine the record of any proceedings in which an adjudicating authority has passed any decision or order under this Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, for the purpose of satisfying himself as to the legality or propriety of the said decision or order and may, by order, direct any officer subordinate to him to apply to the Appellate Authority within six months from the date of communication of the said decision or order for the determination of such points arising out of the said decision or order as may be specified by the Commissioner in his order.

(3) Where, in pursuance of an order under sub-section (2), the authorised officer makes an application to the Appellate Authority, such application shall be dealt with by the Appellate Authority as if it were an appeal made against the decision or order of the adjudicating authority and such authorised officer were an appellant and the provisions of this Act relating to appeals shall apply to such application.

(4) The Appellate Authority may, if he is satisfied that the appellant was prevented by sufficient cause from presenting the appeal within the aforesaid period of three months or six months, as the case may be, allow it to be presented within a further period of one month.

(5) Every appeal under this section shall be in such form and shall be verified in such manner as may be prescribed.

(6) No appeal shall be filed under sub-section (1), unless the appellant has paid-

(a) in full, such part of the amount of tax, interest, fine, fee and penalty arising from the impugned order, as is admitted by him; and

(b) a sum equal to ten per cent. of the remaining amount of tax in dispute arising from the said order, in relation to which the appeal has been filed.

(7) Where the appellant has paid the amount under sub-section (6), the recovery proceedings for the balance amount shall be deemed to be stayed.

(8) The Appellate Authority shall give an opportunity to the appellant of being heard.

(9) The Appellate Authority may, if sufficient cause is shown at any stage of hearing of an appeal, grant time to the parties or any of them and adjourn the hearing of the appeal for reasons to be recorded in writing: Provided that no such adjournment shall be granted more than three times to a party during hearing of the appeal.

(10) The Appellate Authority may, at the time of hearing of an appeal, allow an appellant to add any ground of appeal not specified in the grounds of appeal, if it is satisfied that the omission of that ground from the grounds of appeal was not wilful or unreasonable.

(11) The Appellate Authority shall, after making such further inquiry as may be necessary, pass such order, as it thinks just and proper, confirming, modifying or annulling the decision or order appealed against but shall not refer the case back to the adjudicating authority that passed the said decision or order:

Provided that an order enhancing any fee or penalty or fine in lieu of confiscation or confiscating goods of greater value or reducing the amount of refund or input tax credit shall not be passed unless the appellant has been given a reasonable opportunity of showing cause against the proposed order:

Provided further that where the Appellate Authority is of the opinion that any tax has not been paid or short-paid or erroneously refunded, or where input tax credit has been wrongly availed or utilised, no order requiring the appellant to pay such tax or input tax credit shall be passed unless the appellant is given notice to show cause against the proposed order and the order is passed within the time limit specified under section 73 or section 74.

(12) The order of the Appellate Authority disposing of the appeal shall be in writing and shall state the points for determination, the decision thereon and the reasons for such decision.

(13) The Appellate Authority shall, where it is possible to do so, hear and decide every appeal within a period of one year from the date on which it is filed:

Provided that where the issuance of order is stayed by an order of a court or Tribunal, the period of such stay shall be excluded in computing the period of one year.

(14) On disposal of the appeal, the Appellate Authority shall communicate the order passed by it to the appellant, respondent and to the adjudicating authority.

(15) A copy of the order passed by the Appellate Authority shall also be sent to the jurisdictional Commissioner or the authority designated by him in this behalf and the jurisdictional Commissioner of State tax or Commissioner of Union Territory Tax or an authority designated by him in this behalf.

(16) Every order passed under this section shall, subject to the provisions of section 108 or section 113 or section 117 or section 118 be final and binding on the parties.”

7. On perusal of aforesaid sections, it clearly reveals that Section 29 of the Act of 2017 is confined to an application for revocation against cancellation of registration whereas Section 107 of the Act of 2017 deals with the provisions of Appeal including limitation to file appeal. The limitation under Section 107 of the Act of 2017 is three months which is evident from the perusal of the statutory provision contained in Section 107 of the Act of 2017. However, Section 29 of the Act of 2017 is entirely different and only deals with the application for revocation of cancellation of registration.

7.1 If circular dated 25/06/2020 issued by Ministry of Finance (Department of revenue), Central Board of Indirect Taxes and Customs (Annexure P/6) is perused carefully, the same deals only with Section 29 of GST Act and it stipulates that for the purposes of calculating period of thirty days for filing of application of revocation of cancellation of registration under Sub Section (1) of Section 30 of the Act of 2017 for those registered persons who were served notice under Sub Section 2 (d) and (c) of Section 29 of the Act of 2017 and where the cancellation order was passed up to 12/06/2020, the later of the following dates shall be considered:

(a) date of service of such cancellation order, or

(b) 31/08/2020.

8. Thus, perusal of aforesaid circular reflect that it is unambiguous and in no uncertain terms only deals with Section 29 of the Act of 2017 and not with Section 107 of Act of 2017. Apparently, in the present case the appeal of the petitioner which was moved under Section 107 of the Act of 2017 has been rejected by the Appellate Authority inasmuch being time barred. It is further observed that the directive of Apex Court were issued subsequently upon out break of Covid-19 Pendemic in the year 2020 whereas in the present case, the registration was canceled on 04/02/2019 and the appeal was preferred on 16/09/2019.

9. Thus, in our considered view, the reasoning given by the lower Appellate Authority are just and proper. Circular dated 25/06/2020 (Annexure P/6) is of no assistance to petitioner inasmuch as the same only deals with Section 29 of the Act of 2017 and not with Section 107 of the Act of 2017.

10. Resultantly, the Writ Petition stands dismissed.

11. No order as to cost.