GST Registration Cancellation Revoked: Delay Condoned Upon Payment of Dues
Summary in Key Points:
- Issue: Should the delay in filing the application for revocation of GST registration cancellation be condoned?
- Facts: The assessee’s GST registration was cancelled. The assessee filed a petition against the cancellation order. The respondent authority stated that if the delay in filing the revocation application is condoned and the assessee complies with all requirements (taxes, interest, late fees, penalties), the department would accept the GSTR-3B returns.
- Decision: The court condoned the delay in invoking the proviso to Rule 23. Subject to the assessee depositing all taxes, interest, and penalties, the assessee’s application for revocation was to be considered according to the law.
Important Note: This case demonstrates a lenient approach towards procedural delays, provided the assessee demonstrates a willingness to comply with all substantive requirements. The decision emphasizes that the focus is on ensuring tax compliance and revenue collection rather than strictly adhering to timelines, especially when the assessee is willing to rectify any non-compliance by paying all dues. It provides a pathway for businesses to regain their registration after cancellation, provided they demonstrate good faith and rectify their defaults.
HIGH COURT OF ORISSA
Mohanty Enterprises
v.
Commissioner, CT & GST, Odisha
Dr. S. Muralidhar, CJ.
and M.S. Raman, J.
and M.S. Raman, J.
W.P.(C) No. 30374 of 2022
NOVEMBER 16, 2022
Adhiraj Mohanty, Adv. for the Petitioner. Sunil Mishra, Addl. Standing Counsel and Abinash Kedia, Jr. Standing Counsel for the Respondent.
ORDER
1. Mr. Sunil Mishra, learned Additional Standing Counsel (CT & GST) appearing on an advance notice states that as long as delay in filing the revocation application is condoned, and provided the Petitioner complies with all the requirements of paying the taxes, interest, late fee, penalty etc., due, the 3B Return Form filed by the Petitioner will be accepted by the Opposite Parties.
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.
3. The certified copy of this order will be produced by the Petitioner before the proper officer, and subject to the Petitioner complying with the above conditions, the proper officer will open the portal to enable the Petitioner to file the GST return.
4. The writ petition is disposed of in the above terms.
5. An urgent certified copy of this order be issued as per rules.