Delay in Filing GST Registration Revocation Application Condoned; Application to be Considered

Issue: Whether the delay in filing an application for revocation of cancellation of GST registration can be condoned.

Facts:

The assessee’s GST registration was cancelled.
The assessee filed an application for revocation of the cancellation, but there was a delay in filing the application.

Decision:

The court, following the precedent set in Mohanty Enterprises v. Commissioner, CT & GST, held that the delay in invoking the proviso to Rule 23 of the OGST Rules is condonable.
The court directed that the assessee’s application for revocation of the cancellation of registration be considered in accordance with the law.
This consideration is subject to the assessee depositing all due taxes, interest, late fees, penalties, and complying with other necessary formalities.

Key Takeaways:

This case reiterates that delays in filing revocation applications under Rule 23 of the OGST Rules can be condoned.
The decision emphasizes the importance of following established precedents in similar cases.
The court’s ruling ensures that assessees are given a fair opportunity to rectify their non-compliance, provided they are willing to meet their financial obligations and comply with procedural requirements.
The decision provides relief to taxpayers facing delays in filing revocation applications, promoting a more lenient approach to procedural technicalities when taxpayers demonstrate a willingness to comply.
Compliance with all outstanding dues and formalities is a prerequisite for the revocation application to be considered.

HIGH COURT OF ORISSA

Gunisety Puspak Kumar Dora

Commissioner of Commercial Taxes and Goods and Services Tax

Arindam Sinha and M.S. Sahoo, JJ.

W.P.(C) No.30950 of 2024

DECEMBER 13, 2024

S.A. Mohanty, Adv. for the Petitioner. S. Das, Addl. 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 14^th January, 2023 followed by order dated 14^th February, 2023 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. 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. 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.