Facts of the Case

The petitioner, M/s. Gaurav Mohanty, filed a writ petition before the High Court of Orissa at Cuttack against the Joint Commissioner of State Tax (Appeal), CT & GST, Bhubaneswar Range, seeking condonation of delay in filing an application for revocation of cancelled GST registration. The matter was taken up through hybrid mode. The Standing Counsel for the CT & GST Department, appearing on advance notice, stated that provided the delay in filing the revocation application was condoned, and subject to the petitioner complying with all requirements of paying taxes, interest, late fee and penalty due, the GSTR-3B return filed by the petitioner would be accepted by the Department. On this consensual basis, the Court proceeded to dispose of the petition without adjudicating any disputed question of law. Cancellation of GST registration for non-filing of returns, and the consequent difficulty in filing a timely revocation application under Rule 23 of the OGST Rules, has been a recurring source of litigation before the Orissa High Court, particularly where registered persons face genuine hardship — whether financial, medical, or logistical — in meeting the statutory timelines for seeking revocation. The present matter followed a pattern often seen in such cases, where the Department, instead of contesting the delay, adopts a facilitative stance so long as the taxpayer clears all outstanding statutory dues before the registration is restored and the return is taken on record. The Bench, comprising the Acting Chief Justice and a puisne Judge, disposed of the matter by way of a short order recording the consensus reached between the parties, without entering into any detailed discussion of the reasons for the petitioner's delay or the disputed facts surrounding the original cancellation of registration, since the Department's facilitative stance rendered such an inquiry unnecessary for disposal of the writ petition.

Issues Involved

  1. Whether the delay in the petitioner's application invoking the proviso to Rule 23 of the Odisha Goods and Services Tax Rules for revocation of cancelled registration could be condoned.
  2. Whether the petitioner's GSTR-3B return could be accepted by the Department upon such condonation, subject to compliance with outstanding dues.

Petitioner's Arguments

  • The delay in filing the revocation application ought to be condoned to enable restoration of the GST registration.
  • The petitioner was willing to comply with all requirements, including payment of taxes, interest, late fee and penalty due, to secure acceptance of the return and revocation of cancellation.

Respondent's Arguments

  • The Standing Counsel for the CT & GST Department stated, on advance notice, that so long as the delay was condoned and the petitioner complied with all dues, the GSTR-3B return filed would be accepted.

Court Order/Findings

  • Recording the Department's statement, the Court condoned the delay in invoking the proviso to Rule 23 of the OGST Rules.
  • The Court directed that, subject to the petitioner depositing all taxes, interest, late fee and penalty due and complying with other formalities, the revocation application would be considered by the proper officer in accordance with law.
  • A copy of the order was directed to be produced before the proper officer, who was directed to open the portal to enable the petitioner to file the GST return upon compliance.
  • The writ petition was disposed of in these consensual terms, without any adjudication on contested facts or law.

Important Clarification

Courts routinely condone delay in filing an application for revocation of cancelled GST registration under Rule 23 of the State GST Rules where the Department itself indicates no objection, subject to the taxpayer clearing all outstanding taxes, interest, late fee and penalty.

Sections Involved

  • Odisha Goods and Services Tax Rules, 2017 — Rule 23 (proviso relating to revocation of cancellation of registration).

Decision – In Favour of

The decision favours the Assessee, since the delay was condoned and a pathway for revocation of the cancelled registration was provided, though strictly on a consent basis and subject to full compliance with dues rather than any adjudication on merits.

Related Case Laws

No directly on-point case notes are currently published on this site.

Case Details

  • Court: High Court of Orissa at Cuttack
  • Case No.: W.P.(C) No.34628 of 2023
  • CNR: Not available
  • Coram: Acting Chief Justice Dr. B.R. Sarangi and Mr. Justice Murahari Sri Raman
  • Decision Date: 06.11.2023
  • Disposal Nature: Writ disposed of; delay in revocation application condoned

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