Facts of the Case

The petitioner, M/s. Konark Cement & Asbestos Ltd., had its GST registration cancelled by order dated 30th November, 2024 pursuant to a show cause notice dated 7th October, 2024 issued under the Central Goods and Services Tax Act, 2017. The petitioner approached the Orissa High Court seeking condonation of delay in invoking the revocation remedy and restoration of registration, expressing readiness to pay the tax, interest, late fee, penalty and any other sum necessary for the Department to accept its pending returns, relying squarely on the Court's coordinate bench ruling in M/s. Mohanty Enterprises v. The Commissioner, CT & GST, Odisha.

Issues Involved

  1. Whether delay in invoking the proviso to Rule 23 of the Odisha GST Rules for revocation of cancelled registration can be condoned in the interest of revenue.
  2. Whether such relief should be conditioned on full payment of outstanding tax, interest, late fee and penalty.
  3. Whether the ratio of Mohanty Enterprises squarely covers the petitioner's claim.

Petitioner's Arguments

  • The petitioner was ready and willing to pay the tax, interest, late fee, penalty and any other sum required for the Department to accept its pending returns.
  • The claim, including the prayer for condonation of delay, was covered on all fours by the earlier coordinate bench ruling in M/s. Mohanty Enterprises v. The Commissioner, CT & GST, Odisha, Cuttack.

Respondent's Arguments

  • The Additional Standing Counsel for the Department appeared but raised no specific objection distinguishing the facts from the Mohanty Enterprises precedent.

Court Order / Findings

  • The Court reproduced paragraph 2 of the Mohanty Enterprises order, condoning delay in invoking the proviso to Rule 23 of the OGST Rules subject to the petitioner depositing all taxes, interest, late fee and penalty due and complying with other formalities.
  • A likewise direction was made in this case, the Court holding that the petitioner gets the relief 'in the interest of revenue', since restoring a compliant, return-filing taxpayer serves both the assessee's and the exchequer's interests better than indefinite deregistration.
  • The writ petition was disposed of accordingly, directing the competent authority to consider the petitioner's revocation application in accordance with law upon compliance with the payment conditions.

Important Clarification

  • Delay in filing a revocation application against a GST registration cancellation can be condoned by the Orissa High Court where the taxpayer undertakes to clear all outstanding tax, interest, late fee and penalty.
  • This is now a consistently applied template across the Orissa High Court's GST registration-cancellation docket, closely mirroring the relief granted in Dibyasen Behera and similar matters.
  • Framing the relief as being granted 'in the interest of revenue' underscores that such orders are not merely taxpayer-friendly but are seen as serving the tax administration's own collection interest.

Sections Involved

  • Section 29, CGST Act, 2017 – governs cancellation of GST registration for specified defaults.
  • Rule 23, Odisha GST Rules, 2017 – prescribes the procedure and time limit for revocation of cancellation of registration.

Decision – In Favour of

The decision favours the assessee. The delay in seeking revocation was condoned and the petitioner permitted to pursue restoration of registration, subject to clearing all outstanding dues, in the interest of revenue.

Case Details

High Court of Orissa at Cuttack; W.P.(C) No.31044 of 2025; M/s. Konark Cement & Asbestos Ltd. vs Commissioner of Sales Tax (CT & GST), Cuttack and Others; Coram: Chief Justice Harish Tandon and Justice Murahari Sri Raman; Order dated 17.11.2025.

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