Condonation of Delay in Application for Revocation of GST Registration Cancellation allowed on Payment of all 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 outstanding dues, including taxes, interest, and penalties.
Decision: The High Court, relying on the precedent set in Mohanty Enterprises v. Commissioner, CT & GST, Odisha, 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 willingness to provide relief to taxpayers who are willing to comply with GST regulations, even after their registration has been cancelled. The court’s reliance on the precedent in Mohanty Enterprises emphasizes the importance of consistency in applying the law and providing fair opportunities for taxpayers. This approach promotes tax compliance and ensures a more inclusive GST regime.

HIGH COURT OF ORISSA

Abhaya Kumar Sethi

Commissioner of (C.T. & G.S.T.), Odisha

Arindam Sinha and M.S. Sahoo, JJ.

W.P. (C) No.32847 of 2024

JANUARY 8, 2025

P.C. Nayak, Adv. for the Petitioner. S. Das, Addl. Standing Counsel for the Respondent.

ORDER

1. Mr. Nayak, learned advocate appears on behalf of petitioner and submits, under challenge is show cause notice dated 2^nd February, 2023 followed by order dated 6^th March, 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.