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 the acceptance of their return forms.
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 outstanding dues and complying with other formalities, the revocation application was to be considered according to law.

Important Note: This decision, following the Mohanty Enterprises precedent, consistently favors condoning delays in revocation applications when the assessee demonstrates a willingness to rectify non-compliance by paying all dues. It emphasizes that the primary objective is ensuring tax compliance and revenue collection, rather than strictly adhering to procedural timelines, particularly when the assessee acts in good faith and is ready to cooperate.

HIGH COURT OF ORISSA

Chakra Praska

Superintendent, Rayagada Circle

Arindam Sinha and M.S. Sahoo, JJ.

W.P. (C) No.29905 of 2024

NOVEMBER 30, 2024

P.K. Jena, Adv. for the Petitioner. T.K. Satapathy, Adv., Senior Standing Counsel for the Respondent.

ORDER

1. Mr. Jena, learned advocate appears on behalf of petitioner and submits, under challenge is appeal order dated 25^th October, 2024 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. The 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. Satapathy, learned advocate, Senior 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.