Condonation of Delay in Application for Revocation of GST Registration Cancellation on Payment of Dues

Summary in Key Points:

Issue: Whether the delay in filing an application for revocation of GST registration cancellation can be condoned.
Facts: The assessee’s GST registration was cancelled. They later filed an application for revocation of cancellation, but it was delayed. The assessee expressed willingness to pay all dues, including taxes, interest, and penalties.
Decision: The High Court, relying on the precedent set in Mohanty Enterprises v. Commissioner, condoned the delay in filing the revocation application.

Decision:

The High Court ruled in favor of the assessee, condoning the delay in filing the application for revocation of cancellation of GST registration. The court directed that the assessee’s application should be considered, provided they deposit all outstanding dues like taxes, interest, late fees, and penalties, and comply with other required formalities.

Important Note: This case highlights the High Court’s inclination towards a lenient approach in cases where the assessee demonstrates a genuine intent to comply with GST regulations. By condoning the delay and allowing the assessee to rectify their mistake, the court promotes the objective of facilitating business and ensuring tax compliance. This approach aligns with the principle of natural justice and provides relief to taxpayers who are willing to fulfill their tax obligations.

HIGH COURT OF ORISSA

Smruti Ranjan Dash

Superintendent, CGST and Central Excise

Arindam Sinha and M.S. Sahoo, JJ.

W.P.(C) No. 28796 of 2024

DECEMBER 9, 2024

Ms. I. Tripathy, Adv. for the Petitioner. S.K. Roy Choudhury, Senior Standing Counsel for the Respondent.

ORDER

1. Miss Tripathy, learned advocate appears on behalf of petitioner and submits, under challenge is show cause notice dated 9^th December, 2022 followed by order dated 12^th February, 2023 cancelling her client’s registration under Central Goods and Services Tax Act, 2017. She submits, her 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 her client to be accepted by the department. She 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). She submits, her client’s claim to relief including prayer for condonation of delay is covered by said order.

2. Mr. Roy Choudhury, learned advocate, Senior Standing Counsel appears on behalf of the department. We notice he had appeared in M/s. Mohanty Enterprises (supra).

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.