In WP(C) NO. 15574 OF 2023 -KERL HC- Kerala High Court holds Section 107 of CGST Act implicitly excludes application of Limitation Act
Justice C.S. Dias [13-06-2023]

Read Order: Penuel Nexus Pvt. Ltd V. The Additional Commissioner Headquarters and Ors

Chahat Varma

New Delhi, June 26, 2023: The Kerala High Court has dismissed the writ petition filed by Penuel Nexus Pvt. Ltd. (petitioner) and has held that Section 107 of the Central Goods and Services Tax Act (CGST Act) is an inbuilt mechanism that implicitly excludes the application of the Limitation Act.

Factual background of the case was that the petitioner was a firm engaged in direct marketing. The petitioner's business was adversely affected by the Covid-19 pandemic, leading to delays in filing GST returns. The respondents cancelled the petitioner's GST registration. The petitioner filed an appeal before the 1st respondent, seeking to challenge the cancellation, but it was rejected on the grounds of delay. The petitioner contended that the said orders were arbitrary and unjustifiable.

The court observed that the petitioner's GST registration was cancelled on 10.08.2022. However, the petitioner filed an appeal on 07.03.2023, which was 209 days later, exceeding the statutory period specified under Section 107(4) of the Act.

The court remarked that the CGST Act was a special statute and a self-contained code in itself. It emphasized that the Limitation Act would only apply if it was specifically extended to the special statute. Furthermore, the court stated that the provisions of a fiscal statute must be strictly construed and interpreted.

“On an appreciation of the language of Section 107(4) and the above analysed factual and legal background, this Court is of the view that there is no illegality in the action of the 1st respondent in rejecting the appeal as time-barred,” held the court.