Facts of the Case

M/s. Sharma Construction Works approached the High Court of Orissa in W.P.(C) No. 21620 of 2022 in connection with the delay in invoking the proviso to Rule 23 of the Odisha Goods and Services Tax Rules (OGST Rules) for revocation.

During the proceedings, learned Additional Standing Counsel appearing on advance notice stated that, provided the delay in filing the revocation application was condoned and the Petitioner complied with all requirements relating to payment of taxes, interest, late fee, penalty, etc. due, the Form GSTR-3B return filed by the Petitioner would be accepted by the Opposite Parties.

Issues Involved

The principal issues before the Court were:

  1. Whether the delay in the Petitioner invoking the proviso to Rule 23 of the OGST Rules could be condoned.
  2. Whether the Petitioner’s application for revocation could be considered in accordance with law after payment of all taxes, interest, late fee, penalty, etc. due and compliance with other prescribed formalities.
  3. Whether the proper officer could be directed to open the GST portal to enable the Petitioner to file the GST return after compliance with the conditions imposed by the Court.

Petitioner’s Arguments

The Petitioner sought relief concerning the delayed invocation of the proviso to Rule 23 of the OGST Rules and consequential consideration of the revocation application.

The relief sought, in substance, required condonation of the delay so that the Petitioner could comply with the statutory requirements and proceed with the revocation process and filing of the GST return.

Respondent’s Arguments

The learned Additional Standing Counsel (CT & GST), appearing on advance notice, stated that as long as the delay in filing the revocation application was condoned, and provided the Petitioner complied with all requirements of paying the taxes, interest, late fee, penalty, etc. due, the Form GSTR-3B return filed by the Petitioner would be accepted by the Opposite Parties.

Court Order / Findings

The High Court disposed of the writ petition with the following directions and findings:

  1. The delay in the Petitioner invoking the proviso to Rule 23 of the OGST Rules was condoned.
  2. Subject to the Petitioner depositing all taxes, interest, late fee, penalty, etc. due and complying with other formalities, the Petitioner’s application for revocation was directed to be considered in accordance with law.
  3. The Petitioner was directed to produce a certified copy of the Court’s order before the proper officer.
  4. Subject to the Petitioner complying with the conditions specified by the Court, the proper officer was directed to open the portal to enable the Petitioner to file the GST return.
  5. The writ petition was disposed of in the above terms.

Important Clarification

The relief granted by the High Court was conditional and not unconditional. The Court condoned the delay in invoking the proviso to Rule 23 of the OGST Rules, but consideration of the revocation application was expressly made subject to:

  • Deposit of all taxes due;
  • Payment of applicable interest;
  • Payment of late fee;
  • Payment of penalty, wherever due; and
  • Compliance with other required formalities.

The direction to open the GST portal was also subject to the Petitioner fulfilling the conditions specified in the order. Therefore, the judgment should not be understood as granting automatic revocation merely upon condonation of delay. The revocation application was to be considered in accordance with law after the required compliance.

Section / Rule Involved

Proviso to Rule 23 of the Odisha Goods and Services Tax Rules (OGST Rules) – Revocation of cancellation of registration.

Form GSTR-3B – The order also concerns enabling the Petitioner to file the GST return through opening of the portal after compliance with the conditions imposed by the Court.

conditions, to open the portal so that the Petitioner could file the GST return.

Link to download the order -

https://www.mytaxexpert.co.in/uploads/1783319536_1205compressed.pdf

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