GST Registration Cancellation Revoked: Assessee Allowed to Pay Dues and Apply for Revocation

Summary in Key Points:

Issue: Should the assessee’s GST registration cancellation be revoked, given their willingness to pay all outstanding dues?
Facts: The assessee challenged an order confirming the cancellation of their GST registration. They expressed their willingness to pay all taxes, interest, late fees, penalties, and other outstanding dues to have their returns accepted by the department.
Decision: Following the precedent set in Mohanty Enterprises v. Commissioner, CT & GST, the court directed that the assessee’s application for revocation of cancellation should be considered, subject to the assessee depositing all outstanding dues and complying with other formalities.

Important Note: This decision reinforces the principle established in Mohanty Enterprises that prioritizes tax compliance and revenue collection over strict adherence to procedural timelines. By allowing the assessee to pay their dues and apply for revocation, the court provides a pathway for businesses to rectify their non-compliance and resume operations. This approach encourages voluntary compliance and ensures that businesses are not permanently penalized for procedural lapses, as long as they fulfill their tax obligations.

HIGH COURT OF ORISSA

Prafulla Mahakud

Addl. Commissioner of GST (Appeals)

Arindam Sinha and M.S. Sahoo, JJ.

W.P.(C) No.31276 of 2024

DECEMBER 13, 2024

Sandeep Kumar Jena, Adv. for the Petitioner. T.K. Satapathy, Sr. Standing Counsel for the Respondent.

ORDER

1. Mr. Jena, learned advocate appears on behalf of petitioner and submits, under challenge is the appeal order dated 19^th November, 2024 passed by the Additional Commissioner (Appeal), Bhubaneswar by confirming cancellation of registration under Central 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. We notice he had appeared in M/s. Mohanty Enterprises (supra).

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.