Facts of the Case

The petitioner, Maa Durgabati Traders, Dhenkanal, had its GST registration cancelled by order dated 3rd February 2025, following a show-cause notice dated 6th November 2024. The petitioner approached the Orissa High Court seeking condonation of delay in invoking the proviso to Rule 23 of the Odisha GST Rules for revocation of the cancellation, expressing readiness to clear all tax, interest, late fee and penalty dues, and relying on the Court's settled formula in M/s. Mohanty Enterprises v. The 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 on the same terms as the Mohanty Enterprises formula, subject to clearing all dues.

Petitioner's Arguments

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

Respondent's Arguments

  • The Senior Standing Counsel appeared for the department; no specific opposition to applying the settled 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 facts.
  • 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 petitioner thereby getting relief 'in the interest of revenue.'

Important Clarification

  • The Orissa High Court consistently applies its Mohanty Enterprises formula across multiple petitions for condonation of delay in seeking revocation of cancelled GST registrations, always conditioned on the taxpayer clearing all outstanding statutory dues before the revocation application is even considered.

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.30296 of 2025 — Coram: Chief Justice Harish Tandon and Justice Murahari Sri Raman — Date of Order: 10 November 2025.

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