Bimal Chandra Behera Vs State Tax Officer (Orissa High Court)
Orissa High Court has set aside the cancellation of a Goods and Services Tax (GST) registration, directing the tax authorities to accept the petitioner’s payment of all due taxes, interest, late fees, and penalties. The ruling, in the case of Bimal Chandra Behera Vs. State Tax Officer, emphasizes a precedent set by a coordinate bench, prioritizing revenue collection over a strict interpretation of procedural defaults.
Bimal Chandra Behera had challenged a show cause notice dated July 5, 2023, and a subsequent cancellation order dated October 17, 2023, regarding his GST registration. The petitioner’s counsel expressed readiness to pay all outstanding amounts to facilitate the acceptance of his return form by the department.
The High Court explicitly relied on its earlier order dated November 16, 2022, in M/s. Mohanty Enterprises v. The Commissioner, CT & GST, Odisha, Cuttack and others [W.P.(C) No. 30374 of 2022]. In that case, the High Court condoned the delay in invoking Rule 23 of the Odisha Goods and Services Tax Rules and directed that, subject to the petitioner depositing all dues, their application for revocation of cancellation would be considered.
Following this precedent, the Orissa High Court made a similar direction in Bimal Chandra Behera’s case, allowing the petitioner relief “in the interest of revenue.” The writ petition was disposed of accordingly, providing a pathway for the taxpayer to regularize their GST status by fulfilling their financial obligations.
FULL TEXT OF THE JUDGMENT/ORDER OF ORISSA HIGH COURT
1. This matter is taken up through Hybrid mode.
2. Mr. Tripathy, learned advocate appears on behalf of petitioner and submits, under challenge is show cause notice dated 5thJuly, 2023 followed by order dated 17th October, 2023 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. 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). She submits, her client’s claim to relief including prayer for condonation of delay is covered by said order.
3. Ms. Das, learned advocate, Additional Standing Counsel appears on behalf of the department.
4. 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.
5. The writ petition is disposed of.
