Case Law Details
Badajena Iron & Steel Industries (P.) Ltd. Vs CT and GST Officer (Orissa High Court)
Assessee entitled to file revocation application if complies with all requirements of paying taxes, interest, late fee and penalty dues
Introduction: The recent decision by the Orissa High Court in Badajena Iron & Steel Industries (P.) Ltd. v. ST and GST Officer reaffirms the rights of an Assessee to file a revocation application for the cancellation of GST registration, provided all tax obligations are met. This article explores the implications of the court’s ruling and its alignment with previous judgments and regulatory amendments.
The Hon’ble Orissa High Court in the case of Badajena Iron & Steel Industries (P.) Ltd. v. ST and GST Officer [Writ Petition (Civil) No. 485 of 2023 dated January 16, 2024] held that the Assessee is entitled to file the revocation application against the cancellation of the GST registration, if the Assessee complies with the requirements of paying taxes, interest, late fee, penalty, etc. dues. Thus, the returns filed by the Petitioner would be accepted by the department.
Facts:
Badajena Iron and Steel Industries (P.) Ltd. (“the Petitioner”) had filed an application for revocation against cancellation of registration was rejected due to delay in filing it. The said revocation application was condoned.
The Revenue Department (“the Respondent”) contended that as long as delay in filing the revocation application is condoned and the Petitioner complies with all the requirements of paying taxes, interest, late fee, penalty etc. due, returns would be acceptable by the Department.
Hence, aggrieved by the circumstance, the present writ petition was filed by the Petitioner.
Issue:
Whether Petitioner can file the application for revocation of cancellation of the GST registration in case the Petitioner has delayed in filing it?
Held:
The Hon’ble Orissa High Court Writ Petition No. 485 of 2024 held as under:
- 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.
- Held that, the Petitioner will have to produce the order of the present judgment before the proper officer, and he will open the portal to enable the Petitioner to file the GST returns. Hence, the writ was disposed of.
Our Comments:
- Similar were the facts and issue before the Hon’ble Orrisa High Court in the case of Rakesh Kumar Sethi v. Commissioner of Central Goods and Service tax [Writ Petition (C.) No. 41639 of 2023 dated January 02, 2024] and Bhagabati Prasad kar v Superintendent, CGST and Central Excise [Writ Petition (C.) January 24, 2023], where the court held in the same lines.
- Earlier, the 49th Meeting of the GST Council was held on February 18, 2023 in New Delhi, wherein it was recommended to increase the time limit for applying for revocation of cancellation of GST registration from 30 days to 90 days. It was also recommended that the time limit be extended by the Commissioner/officer for a further period of not exceeding 180 days. Subsequently, the CBIC vide Notification No. 38/2023 – (Central Tax) dated August 04, 2023 has issued ‘the Central Goods and Services Tax (Second Amendment) Rules, 2023’ to further amend the Central Goods and Services Tax, Rules, 2017 (“the CGST Rules”) in to order to align with recommendations of the 49th GST Council Meeting.
- Under Section 30(1) of the Central Goods and Service Tax Act, 2017 (“the CGST Act”) read with Rule 23(1) of the CGST Rules an application for revocation of cancellation of GST registration can be applied.
Conclusion: The ruling in Badajena Iron & Steel Industries (P.) Ltd. v. ST and GST Officer underscores the importance of compliance with tax obligations for Assessees seeking revocation of GST registration cancellation. By clarifying the conditions for filing a revocation application and directing portal accessibility upon compliance, the court ensures procedural fairness while upholding the integrity of the GST regime. This decision, alongside regulatory amendments, contributes to a transparent and accountable tax administration framework.
FULL TEXT OF THE JUDGMENT/ORDER OF ORISSA HIGH COURT
1. This matter is taken up through hybrid mode.
2. Mr. Sunil Mishra, learned Standing Counsel (CT & GST) appearing on an advance notice states that as long as delay in filing the revocation application is condoned, and provided the Petitioner complies with all the requirements of paying the taxes, interest, late fee, penalty etc. due, the 3B Return Form filed by the Petitioner will be accepted by the Opposite Parties.
3. 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.
4. A copy of this order will be produced by the Petitioner before the proper officer, and subject to the Petitioner complying with the above conditions, the proper officer will open the portal to enable the Petitioner to file the GST return.
5. The writ petition is disposed of in the above terms.
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