Consider GST Registration Revocation if Dues Paid & Requirements Met: Orissa HC

Pravat Kumar Behera Vs Superintendent (Orissa High Court)

Orissa High Court recently addressed the case of Pravat Kumar Behera vs Superintendent, wherein the petitioner challenged a show cause notice dated March 16, 2022, and a subsequent order dated April 5, 2022, that resulted in the cancellation of his GST registration. The petitioner, represented by advocate Miss Tripathy, expressed willingness to pay all outstanding dues, including tax, interest, late fees, and penalties, to restore the registration. In support of this claim, she cited the decision in M/s. Mohanty Enterprises v. The Commissioner, CT & GST, Odisha, Cuttack, where a coordinate bench condoned the delay in invoking Rule 23 of the Odisha Goods and Services Tax (OGST) Rules and allowed restoration subject to compliance with tax liabilities.

The petitioner sought similar relief, arguing that the precedent established in Mohanty Enterprises should apply to his case. The advocate for the revenue department, Mr. Kedia, represented the respondents but did not contest the applicability of the cited judgment. The court considered the previous ruling and its relevance to the present matter, particularly regarding condoning delays in seeking revocation of GST registration cancellation.

In Mohanty Enterprises, the court had ruled that if a petitioner deposits all dues and fulfills legal requirements, their application for revocation of cancellation should be considered accordingly. The Orissa High Court reiterated this position in Behera’s case, directing the department to apply the same principles, provided the petitioner complied with the necessary financial obligations. The ruling highlights judicial consistency in GST-related disputes, ensuring procedural fairness and taxpayer compliance.

By aligning its decision with Mohanty Enterprises, the Orissa High Court reinforced the principle that GST registration cancellations should not be punitive when taxpayers are willing to regularize their obligations. This case underscores the importance of procedural clarity and taxpayer rights within the GST framework while balancing the interests of revenue collection. With these directions, the writ petition was disposed of, granting the petitioner a pathway to restore GST registration subject to legal compliance.

FULL TEXT OF THE JUDGMENT/ORDER OF ORISSA HIGH COURT

1. Miss Tripathy, learned advocate appears on behalf of petitioner and submits, under challenge is show cause notice dated 16^th March, 2022 followed by order dated 5^th April, 2022 cancelling her client’s registration under Central 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.