Orissa HC Allows GST Registration Revocation on Payment

Sushri Traders Vs Additional Commissioner of Goods and Service Tax (Orissa High Court)

In Sushri Traders vs. Additional Commissioner of Goods and Service Tax, the Orissa High Court addressed the cancellation of the petitioner’s GST registration under the Odisha Goods and Services Tax Act, 2017. The petitioner challenged the cancellation order, expressing willingness to pay all outstanding dues, including tax, interest, late fees, and penalties, to reinstate registration. The delay in filing the revocation application was a key issue, with the petitioner seeking condonation based on a similar case, Mohanty Enterprises v. Commissioner, CT & GST, Odisha.

The Court referred to its previous decision in Mohanty Enterprises, where it had condoned delays in invoking Rule 23 of the OGST Rules, allowing revocation applications if all dues were cleared. Applying the same reasoning, the Court granted the petitioner an opportunity to revive the GST registration upon fulfilling financial obligations and procedural compliance. The decision balances compliance requirements with business continuity while ensuring that tax dues are settled. Accordingly, the writ petition was disposed of, reaffirming the Court’s consistent approach to GST registration revocation matters.

FULL TEXT OF THE JUDGMENT/ORDER OF ORISSA HIGH COURT

1. Mr. Mohanty, learned advocate appears on behalf of petitioner and submits, under challenge is show cause notice dated 6^th February, 2024 followed by order dated 11^th March, 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 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.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.