Facts of the Case

M/s Capital Security Agency, Khordha, had its GST registration cancelled by order dated 18th June, 2024, following a show cause notice dated 14th May, 2024, issued under the CGST Act, 2017. The petitioner approached the Orissa High Court seeking condonation of the delay in filing an application for revocation of the cancellation, expressing readiness to pay all tax, interest, late fee, penalty and other dues so that its GST returns would be accepted by the department.

Issues Involved

  1. Whether the delay in invoking the proviso to Rule 23 of the OGST Rules for revocation of registration cancellation could be condoned where the assessee undertakes to clear all outstanding dues.
  2. Whether the formula laid down in the coordinate bench's Mohanty Enterprises ruling should be extended to this petitioner.

Petitioner's Arguments

  • The petitioner was ready and willing to pay the tax, interest, late fee, penalty and any other sum required so that its returns would be accepted and its registration revived.
  • The claim for relief, including condonation of delay in invoking Rule 23, was covered by the earlier order dated 16th November, 2022 in M/s. Mohanty Enterprises v. The Commissioner, CT & GST, Odisha (W.P.(C) No.30374 of 2022).

Respondent's Arguments

  • The Additional Standing Counsel for the CT & GST Department appeared but did not seriously contest the extension of the Mohanty Enterprises formula to a similarly placed petitioner.

Court Order / Findings

  • The Court reproduced its own reasoning from Mohanty Enterprises, condoning the delay in invoking the proviso to Rule 23 of the OGST Rules and directing that, subject to the petitioner depositing all taxes, interest, late fee, penalty and other dues and complying with other formalities, the application for revocation would be considered in accordance with law.
  • The same direction was extended to the present petitioner in the interest of revenue, and the writ petition was disposed of accordingly.

Important Clarification

  • Delay in seeking revocation of a cancelled GST registration under Rule 23 of the State GST Rules can be condoned where the assessee undertakes to clear all statutory dues, a formula the Orissa High Court applies consistently 'in the interest of revenue' rather than assessing individual justification for the delay.
  • Such relief does not adjudicate the correctness of the original cancellation; it only reopens the revocation route on payment of dues.

Sections Involved

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

Decision – In Favour of

The writ petition was disposed of in favour of the assessee, with the delay condoned and the revocation route reopened subject to full payment of dues.

Case Details

Court: High Court of Orissa at Cuttack. Case No.: W.P.(C) No.30674 of 2025. Coram: Hon'ble the Chief Justice Harish Tandon and Hon'ble Mr. Justice Murahari Sri Raman. Date of Order: 10th November, 2025.

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