GST Registration Revocation Allowed upon payment of Full Dues

Bikash Chandra Nayak Vs Chief Commissioner (Orissa High Court)

Orissa High Court addressed a petition challenging the cancellation of GST registration through a show cause notice dated February 6, 2024, followed by an order on April 23, 2024. The petitioner sought relief, expressing willingness to clear all outstanding taxes, interest, penalties, and late fees necessary for compliance. The petitioner relied on a precedent set by the court in M/s. Mohanty Enterprises v. The Commissioner, CT & GST, Odisha, Cuttack and others (2022), where a similar delay in invoking Rule 23 of the Odisha GST Rules was condoned. The petitioner argued that his case warranted the same relief, allowing the revocation of GST registration despite the delay.

The court, considering the prior ruling, granted the petitioner’s request and condoned the delay, directing that the revocation application be processed upon full payment of dues and compliance with necessary formalities. The decision ensures that businesses facing registration cancellations due to procedural lapses can seek reinstatement, provided they meet their tax obligations. This judgment reinforces the principle that technical delays should not prevent businesses from continuing operations if they are willing to comply with statutory requirements. The writ petition was subsequently disposed of in favor of the petitioner.

FULL TEXT OF THE JUDGMENT/ORDER OF ORISSA HIGH COURT

1. Mr. Padhy, learned advocate appears on behalf of petitioner and submits, under challenge is show cause notice dated 6^th February, 2024 followed by order dated 23^rd April, 2024 cancelling his client’s registration under Central 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 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). He submits, his 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.