Facts of the Case

The Petitioner, Jai Hind Mining and Infrastructure Pvt. Ltd., approached the High Court of Orissa in relation to delay in filing an application for revocation and the consequential difficulty in filing the GST return.

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

In view of this position, the High Court considered the Petitioner’s delayed invocation of the proviso to Rule 23 of the Central Goods and Services Tax Rules, 2017.

Issues Involved

The principal issues before the Court were:

  1. Whether the delay in the Petitioner’s invocation of the proviso to Rule 23 of the CGST 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 and other dues.
  3. Whether the GST portal should be opened to enable the Petitioner to file the GST return after compliance with the prescribed conditions.

Petitioner’s Arguments

The Petitioner sought relief concerning the delayed filing of the revocation application and the consequential ability to file the GST return.

The Petitioner’s case, as reflected in the relief granted by the Court, was that the delay in invoking the proviso to Rule 23 of the CGST Rules should be condoned so that the revocation application could be considered in accordance with law and the Petitioner could complete the necessary GST return filing formalities.

Respondent’s Arguments

Learned Senior Standing Counsel appearing for the Opposite Parties stated that:

  • if the delay in filing the revocation application was condoned; and
  • if the Petitioner complied with all requirements relating to payment of taxes, interest, late fee, penalty and other amounts due,

then the Form GSTR-3B return filed by the Petitioner would be accepted by the Opposite Parties.

This statement formed an important basis for disposal of the writ petition.

Court Order / Findings

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

  1. Delay Condoned: The delay in the Petitioner’s invocation of the proviso to Rule 23 of the CGST Rules was condoned.
  2. Revocation Application to Be Considered: Subject to the Petitioner depositing all taxes, interest, late fee, penalty and other amounts due and complying with other formalities, the Petitioner’s application for revocation was directed to be considered in accordance with law.
  3. Certified Copy Before Proper Officer: The Petitioner was directed to produce a certified copy of the order before the proper officer.
  4. GST Portal to Be Opened: Subject to compliance with the stated conditions, the proper officer was directed to open the portal to enable the Petitioner to file the GST return.
  5. Disposal of Writ Petition: The writ petition was disposed of in the above terms.
  6. Urgent Certified Copy: The Court directed that an urgent certified copy of the order be issued as per rules.

Important Clarification

The relief granted by the High Court was conditional and not unconditional. The Court did not dispense with the Petitioner’s statutory liabilities or compliance obligations.

The Petitioner was required to:

  • deposit all taxes due;
  • pay applicable interest;
  • pay late fee;
  • pay penalty, wherever due;
  • comply with other prescribed formalities; and
  • produce the certified copy of the Court’s order before the proper officer.

Only upon such compliance was the revocation application to be considered in accordance with law and the GST portal opened to enable filing of the GST return.

The order therefore clarifies that condonation of delay in invoking the proviso to Rule 23 of the CGST Rules can facilitate consideration of a revocation application, but the taxpayer must still discharge outstanding statutory dues and complete the required formalities.

Sections / Rules Involved

Proviso to Rule 23 of the Central Goods and Services Tax Rules, 2017 (CGST Rules) — concerning revocation-related procedure where cancellation of registration has been undertaken by the proper officer and the taxpayer seeks restoration through the prescribed statutory mechanism.

Form GSTR-3B — the GST return referred to in the proceedings, which the Opposite Parties stated would be accepted subject to condonation of delay and compliance with payment and other requirements.

Link to download the order -

https://www.mytaxexpert.co.in/uploads/1783320445_1207compressed.pdf

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