Facts of the Case

The petitioner, Basanta Kumar Parida, challenged a show cause notice dated 5th July 2023 and the consequent order dated 14th August 2023 cancelling his GST registration under the Odisha Goods and Services Tax Act, 2017. The petitioner expressed readiness to pay the tax, interest, late fee, penalty and any other sum required for his return to be accepted by the department, and sought condonation of delay in seeking revocation of the cancellation, relying on an earlier coordinate Bench decision of the same High Court in M/s. Mohanty Enterprises vs. The Commissioner, CT & GST, Odisha.

Issues Involved

  1. Whether delay in invoking the proviso to Rule 23 of the OGST Rules for revocation of cancellation of GST registration can be condoned where the assessee is willing to clear all statutory dues.

Petitioner's Arguments

  • The petitioner was ready and willing to pay all tax, interest, late fee, penalty and other sums required for the return to be accepted by the department.
  • The case was covered by the coordinate Bench's order in Mohanty Enterprises, where delay in invoking the proviso to Rule 23 of the OGST Rules was condoned on similar terms.

Respondent's Arguments

  • The department's Senior Standing Counsel appeared but did not seriously contest the applicability of the Mohanty Enterprises precedent to the facts of the present case.

Court Order / Findings

  • Following its own precedent in Mohanty Enterprises, the Court held that delay in invoking the proviso to Rule 23 of the OGST Rules is liable to be condoned, subject to the petitioner depositing all taxes, interest, late fee, penalty and other dues and complying with other formalities, whereafter the application for revocation shall be considered in accordance with law.
  • The writ petition was disposed of granting the petitioner relief in the interest of revenue on the same terms as directed in Mohanty Enterprises.

Important Clarification

  • Delay in filing an application for revocation of cancellation of GST registration under the proviso to Rule 23 of the State GST Rules can be condoned by courts where the assessee undertakes to clear all outstanding tax, interest, late fee and penalty, ensuring no prejudice to revenue.
  • Such condonation does not amount to automatic restoration - the revocation application must still be considered and decided by the department on its merits after full compliance.

Sections Involved

  • Section 30, OGST Act, 2017 - revocation of cancellation of registration.
  • Rule 23, OGST Rules, 2017 - procedure for revocation of cancellation of registration, including the proviso for condonation of delay.

Decision – In Favour of

Decided in favour of the assessee; delay condoned and revocation application to be considered on merits upon full payment of dues.

Case Details

  • Court: High Court of Orissa at Cuttack
  • Case No.: WP(C) No.24778 of 2025
  • Coram: Chief Justice Harish Tandon and Justice Murahari Sri Raman
  • Date: 19th September, 2025

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