Delay in GST Registration Revocation Application Condoned; Application to be Considered
Issue: Whether the delay in filing an application for revocation of cancellation of GST registration can be condoned under Rule 23 of the Odisha Goods and Services Tax (OGST) Rules.
Facts:
- The assessee’s GST registration was cancelled.
- The assessee filed an application for revocation of the cancellation but with a delay.
Decision:
- Following the precedent set in Mohanty Enterprises v. Commissioner, CT & GST, the court held that the delay in invoking the proviso to Rule 23 of the OGST Rules is condonable.
- The court directed that the assessee’s application for revocation be considered in accordance with the law, subject to the assessee depositing all due taxes, interest, late fees, penalties, and complying with other formalities.
Key Takeaways:
- Condonation of Delay: Delays in filing revocation applications under Rule 23 of the OGST Rules can be condoned.
- Precedent Following: Courts follow established precedents in similar cases.
- Compliance with Obligations: The assessee must deposit all dues and comply with formalities for the revocation application to be considered.
- Reasonable Opportunity: This decision ensures that assessees are given a reasonable opportunity to rectify non-compliance.
- Judicial Discretion: The court exercises its discretion to condone delays in appropriate cases.
- The court is reinforcing the idea that procedural delays should not prevent a tax payer from reclaiming their registration, if they are willing to comply with the law.
HIGH COURT OF ORISSA
Siddhi Vinayak Process
v.
Assistant Commissioner of State Tax
Arindam Sinha and M.S. Sahoo, JJ.
W.P.(C) No. 31952 of 2024
DECEMBER 20, 2024
L.N. Sahoo, Adv. for the Petitioner. S. Das, Adv. for the Respondent.
ORDER
1. Mr. Sahoo, learned advocate appears on behalf of petitioner and submits, under challenge is show cause notice dated 14th May, 2024 followed by order dated 26th 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.