Case Law Details
Durga Cycle Store Vs State Tax Officer (Orissa High Court)
Orissa High Court ruled in favor of Durga Cycle Store, allowing the revocation of its cancelled GST registration upon payment of outstanding dues. The petitioner challenged a show cause notice dated May 14, 2024, and the cancellation order dated June 18, 2024, issued under the Odisha Goods and Services Tax (OGST) Act, 2017. The petitioner expressed willingness to clear all pending tax liabilities, interest, late fees, and penalties to restore the registration. The petitioner’s counsel relied on a previous decision in M/s. Mohanty Enterprises v. The Commissioner, CT & GST, Odisha, where a similar relief was granted. The Court acknowledged that the petitioner’s case aligned with the prior ruling, which allowed GST registration revocation upon fulfillment of statutory dues.
In its ruling, the Court condoned the delay in seeking revocation and directed that, subject to the full payment of dues and compliance with formalities, the tax department must process the revocation request as per the law. The judgment reinforces that businesses can seek reinstatement of GST registration if they clear their liabilities, ensuring compliance while safeguarding revenue interests. The writ petition was disposed of in favor of the petitioner, granting relief similar to previous rulings.
FULL TEXT OF THE JUDGMENT/ORDER OF ORISSA HIGH COURT
1. Mr. Harichandan, learned advocate appears on behalf of petitioner and submits, under challenge is show cause notice dated 14th May, 2024 followed by order dated 18th 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. 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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