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

Delay in Filing GST Registration Revocation Application Condoned; Revocation to be Considered on Payment of Dues

Issue: Whether the delay in filing an application for revocation of GST registration cancellation can be condoned under Rule 23 of the OGST Rules.

Facts:

The assessee’s GST registration was cancelled by an order dated December 12, 2023.
The assessee expressed willingness to pay all dues, including tax, interest, late fees, and penalties.
The assessee sought condonation of the delay in filing the revocation application under Rule 23 of the OGST Rules.

Decision:

The court, following the precedent in Mohanty Enterprises v. Commissioner, CT & GST, Odisha, condoned the delay in invoking Rule 23.
Subject to the assessee depositing all dues and complying with necessary formalities, the application for revocation was to be considered according to law.
The petition was disposed of.

Key Takeaways:

This case demonstrates that courts are willing to condone delays in filing revocation applications under Rule 23, provided the assessee shows a genuine intention to comply with tax obligations.
The willingness to pay all outstanding dues is a crucial factor in seeking condonation of delay.
Precedents from previous cases play a significant role in judicial decisions regarding condonation of delay.
The court’s decision ensures that assessees are not unduly penalized for procedural delays, especially when they are willing to rectify their non-compliance.
This ruling provides relief to taxpayers who may have missed the deadline for filing revocation applications due to genuine reasons.

HIGH COURT OF ORISSA

Biswajeet Ojha

Superintendent, CT & GST

Arindam Sinha and M.S. Sahoo, JJ.

W.P.(C) No. 26950 of 2024

NOVEMBER 11, 2024

Ms. I. Tripathy, Adv. for the Petitioner. S.K. Roy Choudhury, Adv. (Sr. Standing Counsel) for the Responent.

ORDER

1. Miss Tripathy, learned advocate appears on behalf of petitioner and submits, under challenge is show cause notice dated 11^th October, 2023 followed by order date 12^th December, 2023 cancelling her client’s registration under Odisha 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 (Mohanty Enterprises v. Commissioner, CT & GST, Odisha (Ori)). She submit, her client’s claim to relief including payer 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 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 Petitioners 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 accordingly disposed of.