Case Law Details
Samir Kumar Samantaray Vs Assistant Commissioner of State Tax (Orissa High Court)
The Orissa High Court, in Samir Kumar Samantaray v. Assistant Commissioner of State Tax, ruled in favor of revoking the cancellation of GST registration upon payment of outstanding dues. The petitioner challenged a show cause notice dated August 8, 2023, and the subsequent cancellation order of February 8, 2024. The petitioner expressed willingness to clear all pending tax liabilities, including interest, penalties, and late fees, to facilitate the acceptance of their GST returns.
Relying on the precedent set in M/s. Mohanty Enterprises v. The Commissioner, CT & GST, Odisha, Cuttack & Others (W.P.(C) No. 30374 of 2022), the court reiterated that delay in applying for revocation under Rule 23 of the Odisha Goods and Services Tax Rules (OGST Rules) can be condoned. In the cited case, the court had held that a taxpayer’s revocation request must be considered upon clearing all dues and complying with legal formalities. The same principle was applied in the present case, ensuring consistency in judicial interpretation.
The court noted that the revocation of GST registration is crucial for businesses to continue operations and fulfill tax obligations. The department did not present any argument opposing the application, and the court, prioritizing revenue interests, allowed the petition. The ruling confirms that a delay in seeking revocation should not result in permanent deregistration if the taxpayer is willing to comply with statutory requirements.
Following this judgment, the petitioner’s GST registration will be restored, subject to payment of all outstanding dues and compliance with procedural formalities. The case reinforces the approach that procedural delays should not override substantive tax compliance, ensuring that taxpayers can rectify defaults without undue hardship.
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 8th August, 2023 followed by order dated 8th February, 2024 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 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). She submits, her 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.
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