Facts of the Case

The petitioner, M/s. S.L. Traders, had its registration cancelled by an order dated 12th December 2023, passed pursuant to a show cause notice dated 8th November 2022 issued under the Odisha Goods and Services Tax Act, 2017. The petitioner approached the Orissa High Court seeking condonation of delay in seeking revocation and restoration of its GST registration, expressing readiness to pay all outstanding tax, interest, late fee and penalty. Counsel for the petitioner relied on an earlier coordinate-bench order in M/s. Mohanty Enterprises v. Commissioner, CT and GST, Odisha, granting identical relief on similar facts.

Issues Involved

  1. Whether delay in invoking the proviso to Rule 23 of the OGST Rules for revocation of a cancelled GST registration can be condoned.
  2. Whether restoration can be conditioned on payment of outstanding statutory dues in the interest of revenue.

Petitioner's Arguments

  • The petitioner was ready and willing to pay all tax, interest, late fee, penalty and any other sum required for the return to be accepted.
  • The delay in seeking revocation deserved condonation, as squarely covered by the coordinate bench's order in Mohanty Enterprises, decided on identical facts.
  • Denial of registration restoration would only harm revenue collection, since the petitioner was willing to comply fully with statutory formalities and clear all dues before resuming business under GST.

Respondent's Arguments

  • The Department, represented by its Junior Standing Counsel, did not seriously contest the relief once the petitioner undertook to clear all dues.
  • No separate ground was pressed to distinguish the present case from the Mohanty Enterprises precedent relied upon by the petitioner.

Court Order / Findings

  • The Division Bench reproduced paragraph 2 of the Mohanty Enterprises order, which condoned delay under Rule 23 of the OGST Rules subject to the petitioner depositing all taxes, interest, late fee and penalty and complying with other formalities.
  • The Court held that the petitioner was entitled to like relief in the interest of revenue, since compliance and payment of dues serves the exchequer better than keeping a willing taxpayer's registration cancelled.
  • The writ petition was accordingly disposed of on the same terms as Mohanty Enterprises.

Important Clarification

  • Delay in filing a revocation application under Rule 23 of the OGST/CGST Rules can be condoned by writ courts where the assessee shows bona fide willingness to pay dues.
  • Restoration of a cancelled registration serves the interest of revenue better than continued cancellation, since a functioning GSTIN allows recovery of taxes and future compliance.
  • This line of orders provides a template relief for numerous small taxpayers facing registration cancellation for non-filing of returns.

Sections Involved

  • Odisha Goods and Services Tax Act, 2017 – governs registration, cancellation and revocation of registration for Odisha taxpayers.
  • Rule 23, OGST Rules, 2017 – prescribes the procedure and time-limit for applying for revocation of cancellation of registration.

Decision – In Favour of

Decided in favour of the assessee. The Court condoned the delay and directed that the petitioner's revocation application be considered in accordance with law upon deposit of all dues.

Case Details

Court: High Court of Orissa at Cuttack
Case No.: W.P.(C) No.27271 of 2025
Coram: Hon'ble the Chief Justice Harish Tandon and Hon'ble Mr. Justice Murahari Sri Raman
Date of Order: 25.09.2025

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