Orissa HC Allows Revocation of GST Registration on Payment

Binita Readymade Traders Vs CT and GST Officer (Orissa High Court)

In Binita Readymade Traders vs. CT and GST Officer, 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 show cause notice and cancellation order, expressing willingness to pay all outstanding dues, including tax, interest, late fees, and penalties, to reinstate the registration. Relying on a precedent set in Mohanty Enterprises vs. Commissioner, CT & GST, Odisha, the petitioner sought similar relief, arguing that the delay in filing for revocation should be condoned.

The Court, acknowledging the precedent, granted the petitioner an opportunity to apply for revocation upon full payment of dues and compliance with necessary formalities. The decision aligns with revenue interests, allowing businesses to continue operations while ensuring tax compliance. Accordingly, the writ petition was disposed of, reaffirming the Court’s position on granting relief in similar GST registration cancellation cases.

FULL TEXT OF THE JUDGMENT/ORDER OF ORISSA HIGH COURT

1. Mr. Sethy, learned advocate appears on behalf of petitioner and submits, under challenge is show cause notice dated 20^th November, 2021 followed by order dated 30^th November, 2021 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. Das, learned advocate, Additional Standing Counsel appears on behalf of the department. We notice he had appeared in M/s. Mohanty Enterprises (supra).

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.