Revocation of GST Registration Cancellation Allowed on payment of Dues
Summary:
The assessee’s GST registration was cancelled after a show cause notice. However, the assessee was willing to pay all outstanding dues (tax, interest, late fee, penalty, etc.) to have their registration reinstated. The court, referencing the Mohanty Enterprises case, decided to condone the delay in the assessee’s application for revocation, provided they deposit all outstanding dues. The court also directed the relevant authorities to consider the assessee’s application for revocation in accordance with the law.
Facts of the Case:
- The assessee’s GST registration was cancelled following a show cause notice.
- The assessee was willing and ready to pay all outstanding taxes, interest, late fees, penalties, and any other dues required to have their GST registration reinstated.
- The assessee’s application for revocation of the cancellation was delayed.
Decision:
- Delay Condoned: The court condoned the delay in the assessee’s application for revocation, subject to the assessee depositing all outstanding dues.
- Revocation Application to be Considered: The court directed the department to consider the assessee’s application for revocation of the cancellation of their registration in accordance with the law, specifically referencing Section 30 of the Central Goods and Services Tax Act, 2017/Odisha Goods and Services Tax Act, 2017.
- Decision in favor of the assessee: The ruling was ultimately in favor of the assessee, allowing them the opportunity to regain their GST registration.
This case highlights the importance of timely compliance with GST regulations and the potential for leniency when taxpayers demonstrate a willingness to rectify their non-compliance by paying all dues.
HIGH COURT OF ORISSA
Durga Cycle Store
v.
State Tax Officer, CT & GST Circle-II
Arindam Sinha and M.S. Sahoo, JJ.
W.P. (C) No.609 of 2025
JANUARY 8, 2025
P. Harichandan, Adv. for the Petitioner. S. Das, Addl. Standing Counsel for the Respondent.
ORDER
1. Mr. Harichandan, learned advocate appears on behalf of petitioner and submits, under challenge is show cause notice dated 14th May, 2024 followed by order dated 18th June, 2024 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 16th 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.