Facts of the Case

The petitioner, Bimal Kumar Kar, had his GST registration cancelled by order dated 3rd July 2024, following a show-cause notice dated 27th March 2024. He approached the Orissa High Court seeking condonation of delay in invoking the proviso to Rule 23 of the Odisha GST Rules for revocation of cancellation, expressing readiness to pay all tax, interest, late fee and penalty due, and relying on the Court's own earlier order in M/s. Mohanty Enterprises v. Commissioner, CT & GST, Odisha (W.P.(C) No.30374 of 2022, dated 16.11.2022).

Issues Involved

  1. Whether delay in seeking revocation of a cancelled GST registration can be condoned by the Court on the same terms as the settled Mohanty Enterprises formula, subject to clearing all dues.

Petitioner's Arguments

  • The petitioner was ready and willing to pay the tax, interest, late fee, penalty and any other sum required for the return to be accepted, and the claim for relief, including condonation of delay, was covered by the Mohanty Enterprises precedent.

Respondent's Arguments

  • The Additional Standing Counsel (CT & GST) appeared for the department; no specific opposition to the applicability of the Mohanty Enterprises formula is recorded.

Court Order / Findings

  • Reproducing paragraph 2 of its earlier order in Mohanty Enterprises, the Court applied the identical direction to the present case.
  • The delay in invoking the proviso to Rule 23 of the Odisha GST Rules was condoned, subject to the petitioner depositing all taxes, interest, late fee, penalty and other dues and complying with other formalities, with the revocation application to be considered in accordance with law, the Court noting the petitioner thereby gets relief 'in the interest of revenue.'

Important Clarification

  • The Orissa High Court applies a consistent, settled formula (from Mohanty Enterprises) for condoning delay in seeking revocation of a cancelled GST registration, conditioned strictly on the taxpayer clearing all outstanding tax, interest, late fee and penalty dues.
  • Such relief is characterised by the Court as being in the interest of revenue itself, since it brings a non-compliant but willing taxpayer back into the compliance fold rather than leaving the registration permanently cancelled.

Sections Involved

  • Rule 23, Odisha GST Rules, 2017 – procedure and proviso for condoning delay in applying for revocation of cancellation of registration.
  • Section 29(2), CGST/OGST Act, 2017 – cancellation of registration.
  • Section 30, CGST/OGST Act, 2017 – revocation of cancellation of registration.

Decision – In Favour of

The decision is in favour of the assessee. Delay in seeking revocation was condoned subject to clearing all dues, with the revocation application to be considered on merits.

Case Details

Court: High Court of Orissa at Cuttack — Case No.: W.P.(C) No.21176 of 2025 — Coram: Chief Justice Harish Tandon and Justice Murahari Sri Raman — Date of Order: 8 August 2025.

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