Delay in Seeking Revocation of GST Registration Cancellation Condoned 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 petitioner’s GST registration was cancelled following a show cause notice issued on August 8, 2023, and a subsequent order dated December 12, 2023.
The petitioner filed a writ petition challenging the cancellation, expressing their willingness to pay all outstanding dues, including taxes, interest, late fees, and penalties.

Decision:

The court referred to the precedent set in Mohanty Enterprises v. The Commissioner, CT & GST, Odisha, Cuttack and others, where the delay in invoking the proviso to Rule 23 of the GST Rules was condoned.
Following the Mohanty Enterprises case, the court condoned the delay in the present case, subject to the petitioner depositing all outstanding dues and complying with other formalities.
The court directed the authorities to consider the petitioner’s application for revocation of cancellation in accordance with the law.

Key Takeaways:

This case reaffirms the principle established in Mohanty Enterprises that delays in seeking revocation of GST registration cancellation can be condoned if the taxpayer demonstrates willingness to pay all dues and comply with other requirements.
This 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 and fulfilling other formalities as a precondition for seeking revocation of cancellation.

HIGH COURT OF ORISSA

Sunil Pradhan

Superintendent, Angul Circle

Arindam Sinha and M.S. Sahoo, JJ.

W.P.(C) No.31586 of 2024

DECEMBER 16, 2024

Mrs. Z.M. Wallace, Adv. for the Petitioner. A. Kedia, Jr. Standing Counsel for the Respondent.

ORDER

1. Mrs. Wallace, learned advocate appears on behalf of petitioner and submits, under challenge is show cause notice dated 8^th August, 2023 followed by order dated 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 (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.