Orissa HC Allows GST Registration Revocation Upon Tax, Interest, Late Fee, Penalty Payments

Gouramohan Kunda Vs Commissioner of (C.T. & G.S.T.) (Orissa High Court)

In the case of Gouramohan Kunda vs. Commissioner of C.T. & G.S.T., the Orissa High Court addressed the issue of revocation of registration under the Odisha Goods and Services Tax (OGST) Act, 2017. The petitioner’s registration had been canceled based on a show cause notice issued in January 2021, followed by an order in February 2021. The petitioner challenged this cancellation, expressing willingness to pay all outstanding dues, including taxes, interest, late fees, and penalties, to reinstate their registration. The petitioner’s claim was supported by a previous decision in M/s. Mohanty Enterprises v. The Commissioner, CT & GST, where the court had allowed the revocation of registration upon the payment of all dues.

The court referenced a key ruling from the M/s. Mohanty Enterprises case, which allowed the revocation of cancellation for entities willing to comply with tax obligations. The Orissa HC reiterated that the petitioner could have their registration reinstated, provided all due payments, including taxes, interest, late fees, and penalties, were settled. This case highlights the flexibility within the OGST system to offer relief to taxpayers who are ready to meet their obligations. The writ petition was disposed of in favor of the petitioner, providing a pathway for them to reinstate their registration under the conditions of compliance.