Delay Of 17 Months In Filing Appeal Not Condonable U/S 107 Of CGST Act: Jharkhand High Court Dismisses Plea Challenging Cancellation Of Registration

The Jharkhand High Court has held that an appeal filed beyond the statutory period of limitation, as prescribed under Section 107 of the Central Goods and Services Tax Act, 2017, is not maintainable and the delay cannot be condoned beyond the limits expressly stated in the statute.

The Division Bench comprising Chief Justice M. S. Ramachandra Rao and Justice Deepak Roshan held, “Even otherwise, since specific period has been enshrined in the statute itself, the same cannot be condoned. Thus, we are having no hesitation in holding that the petitioner Firm is not entitled for any relief on the ground of being lethargic in approach, inasmuch as, on the one hand, the petitioner did not file its return for a continuous period of six months and on the other hand, petitioner-Firm filed appeal before the appellate authority after a delay of almost 17 months which is admittedly beyond the period of three months for filing appeal as prescribed under Section 107 (1) of the CGST Act, 2017.”

Further, the Court reiterated, “At the cost of repetition, since the appeal has been filed after a delay of almost 17 months; as such, neither there is any perversity in the order of cancellation of GST registration; nor is there any necessity for interference with the appellate order, inasmuch as, the appeal has been filed beyond the statutory period of limitation.”

Delivering the judgment, the division bench dismissed the writ petition filed by M/s. Bokna Raiyat Rojgar Committee, a partnership firm, against the cancellation of its GST registration and the rejection of its appeal by the Appellate Authority.

As per the factual matrix of the case, the petitioner-firm, engaged in transportation services, had its GST registration cancelled by the authorities on 12 May 2022 under Section 29 of the CGST Act. The cancellation was initiated after the petitioner failed to file GST returns for a continuous period of six months. A show cause notice dated 26 March 2022 was issued, and while the petitioner submitted a reply on 7 April 2022, the registration was nonetheless cancelled.

The petitioner subsequently filed an appeal against the cancellation order. However, the appeal was filed after a delay of approximately 17 months, well beyond the three-month limitation period prescribed under Section 107(1) of the CGST Act, and also beyond the additional one-month grace period under Section 107(4). The Appellate Authority, citing the delay, rejected the appeal.

Before the High Court, the petitioner argued that the delay in filing returns occurred due to non-payment of dues by service recipients, which adversely impacted business operations. Additionally, it was submitted that the delay in appeal filing was caused by medical issues which prevented participation in day-to-day business activities.

The Court, however, found no merit in the explanation, holding that the statutory period could not be extended indefinitely. In its judgement, the Court explained, “Section 107 of CGST Act, 2017 clearly stipulates the timing for filing appeal of three months and if the appellate authority is satisfied that the assessee was prevented by sufficient cause for presenting the appeal within the aforesaid period of three months, then, he may allow a further period of one month.”

Emphasising strict adherence to the statute, the Court concluded that there was no ground to interfere with either the cancellation order or the rejection of the appeal.

Accordingly, the writ petition was dismissed. The Court made no order as to costs.

Case Title: M/s. Bokna Raiyat Rojgar Committee vs The Union of India

LL Citation: 2025 LiveLaw (Jha) 31

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