Facts of the Case

Sunil Kumar Gantayat's GST registration under the Odisha Goods and Services Tax Act, 2017 was cancelled by order dated 25 January 2019. He approached the Orissa High Court seeking condonation of the delay in filing an application for revocation of that cancellation, expressing readiness to pay all tax, interest, late fee, penalty and any other sum due so that his pending return forms would be accepted by the Department. His counsel relied on an identical, earlier co-ordinate Bench ruling in M/s Mohanty Enterprises v. The Commissioner, CT & GST, Odisha, which had granted the same relief on comparable facts.

Issues Involved

  1. Whether delay in filing a revocation application against cancellation of GST registration can be condoned by invoking the proviso to Rule 23 of the Odisha GST Rules through writ jurisdiction.
  2. What conditions should attach to such condonation, particularly regarding clearance of outstanding tax dues.
  3. Whether the co-ordinate Bench precedent in Mohanty Enterprises should be applied on identical facts.

Petitioner's Arguments

  • Submitted that the petitioner was ready and willing to pay the tax, interest, late fee, penalty and any other sum required for his pending returns to be accepted by the Department.
  • Relied on the Court's earlier order in M/s Mohanty Enterprises v. The Commissioner, CT & GST, Odisha, Cuttack, where identical relief — condonation of delay in invoking the proviso to Rule 23 conditional on full payment — had been granted.

Respondent's Arguments

  • The Additional Standing Counsel appearing for the Department did not seriously contest the applicability of the Mohanty Enterprises precedent to the petitioner's facts.

Court Order / Findings

  • The Division Bench reproduced its own reasoning from Mohanty Enterprises, which condoned delay in invoking the proviso to Rule 23 of the OGST Rules, directing that the petitioner's application for revocation be considered in accordance with law subject to depositing all taxes, interest, late fee, penalty and other dues.
  • Held that a like direction be made in the present writ petition, granting the petitioner relief in the interest of revenue, since compliance ensures the outstanding dues would actually be recovered rather than remaining permanently unrealised.
  • Disposed of the writ petition on these terms, without any separate examination of the merits of the original cancellation.

Important Clarification

  • Delay in filing an application for revocation of GST registration cancellation, beyond the time prescribed under Rule 23 of the CGST/OGST Rules, can be condoned by the High Court in writ jurisdiction, provided the taxpayer commits to full payment of all outstanding tax, interest, late fee and penalty.
  • Courts treat such condonation as being 'in the interest of revenue' rather than a mere concession to the taxpayer, since it enables recovery of dues that would otherwise remain unrealised if the registration stayed cancelled and the business ceased to file returns.

Sections Involved

  • Section 30, CGST/OGST Act, 2017 – provides for revocation of cancellation of registration.
  • Rule 23, OGST Rules, 2017 – prescribes the procedure and proviso for condoning delay in applying for revocation.

Decision – In Favour of

Disposed of in favour of the assessee, with delay in seeking revocation condoned subject to full payment of all taxes, interest, late fee and penalty due.

Case Details

  • Court: High Court of Orissa at Cuttack
  • Case No.: W.P.(C) No.13678 of 2025
  • Coram: Hon'ble the Chief Justice Harish Tandon and Hon'ble Mr. Justice Murahari Sri Raman
  • Date of Order: 11 July 2025

Link to Download the Order

Click here to view/download the full order

Disclaimer

This content is shared strictly for general information and knowledge purposes only. Readers should independently verify the information from reliable sources. It is not intended to provide legal, professional, or advisory guidance. The author and the organisation disclaim all liability arising from the use of this content. The material has been prepared with the assistance of AI tools.