Delay in Seeking Revocation of GST Registration Cancellation Condoned; Application to be Considered on Payment of dues

Issue: Whether the delay in filing an application for revocation of cancellation of GST registration can be condoned, and under what conditions.

Facts:

The assessee’s GST registration was cancelled following a show cause notice.
The assessee expressed willingness to pay all outstanding dues, including tax, interest, late fee, and penalty, to have their registration restored.

Decision:

The court referred to the decision in Mohanty Enterprises v. Commissioner, CT & GST, Odisha, Cuttack and others and held that the delay in invoking the proviso to Rule 23 of the GST Rules could be condoned.
The court directed the assessee to deposit all outstanding dues, including tax and penalties.
Upon compliance with the payment requirement, the assessee’s application for revocation of cancellation of registration was to be considered in accordance with the law.

Key Takeaways:

This case demonstrates the court’s willingness to condone delays in seeking revocation of GST registration cancellation, especially when the assessee is willing to comply with all tax obligations.
The decision provides relief to taxpayers who may have missed the deadline for filing the revocation application due to genuine reasons.
It emphasizes the importance of paying all outstanding dues as a precondition for seeking revocation of cancellation.

HIGH COURT OF ORISSA

Bhoi Construction

Superintendent, CGST and Central Excise

Arindam Sinha, Actg. CJ.
and M.S. Sahoo, J.

W.P.(C) No. 2478 of 2025

JANUARY 28, 2025

Miss Itishree Tripathy, Adv. for the Petitioner. A. Kedia, Jr. Standing Counsel for the Opposite Respondent.

ORDER

1. Miss Tripathy, learned advocate appears on behalf of petitioner and submits, under challenge is show cause notice dated 26^th December, 2022 followed by order dated 26^th January, 2023 cancelling her client’s registration under Central Goods and Services Tax Act, 2017. She submits, her 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 her client to be accepted by the department. She 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). She submits, her client’s claim to relief including prayer for condonation of delay is covered by said order.

2. Mr. Kedia, learned advocate, Junior 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.