GST Registration Cancellation Revoked on Payment of Dues : Delay in Revocation Application Condoned

Summary in Key Points:

Issue: Should the delay in filing the application for revocation of GST registration cancellation be condoned?
Facts: The assessee’s registration was cancelled. The assessee filed a revocation application, but there was a delay. The assessee was willing to pay all outstanding dues (tax, interest, late fee, penalty, etc.) for return acceptance.
Decision: Citing Mohanty Enterprises v. Commissioner, CT & GST, the court condoned the delay in invoking the proviso to Rule 23 of the OGST Rules. Subject to the assessee depositing all dues and complying with other formalities, the revocation application was to be considered according to law.

Important Note: Consistent with Mohanty Enterprises, this decision favors condoning delays in revocation applications when the assessee is willing to rectify non-compliance by paying all dues. It prioritizes tax compliance and revenue collection over strict adherence to timelines, especially when the assessee demonstrates good faith and a willingness to cooperate.

HIGH COURT OF ORISSA

Sushri Traders

Additional Commissioner of Goods and Service Tax

Arindam Sinha and M.S. Sahoo, JJ.

W.P.(C) No. 27984 of 2024

NOVEMBER 26, 2024

M.K. Mohanty and B.B. Panda, Advs. for the Petitioner. D. Das, Adv., Additional Standing Counsel for the Respondent.

ORDER

1. Mr. Mohanty, learned advocate appears on behalf of petitioner and submits, under challenge is show cause notice dated 6^th February, 2024 followed by order dated 11^th March, 2024 cancelling his client’s registration under Odisha Goods and Services Tax Act, 2017. He submits, his client is ready and willing to pay the tax, interest, late fee, penalty and any other sum required to be paid for the return form of his client to be accepted by the department. He relies on order dated 16^th November, 2022 of coordinate Bench in W.P.(C) no.30374 of 2022 (M/s. Mohanty Enterprises v. Commissioner, CT & GST, Odisha, Cuttack and others). He submits, his client’s claim to relief including prayer for condonation of delay is covered by said order.

2. Mr. Das, learned advocate, Additional Standing Counsel appears on behalf of the department.

3. We reproduce below paragraph-2 from said order in M/s. Mohanty Enterprises (supra).

“2. In that view of the matter, the delay in Petitioner’s invoking the proviso to Rule 23 of the Odisha Goods and Services Tax Rules (OGST Rules) is condoned and it is directed that subject to the Petitioner depositing all the taxes, interest, late fee, penalty etc., due and complying with other formalities, the Petitioner’s application for revocation will be considered in accordance with law.”

Likewise direction is made in this writ petition. Petitioner gets the relief in the interest of revenue.

4. The writ petition is disposed of.