Facts of the Case

The petitioner, Dibyasen Behera, had his GST registration cancelled under the Central Goods and Services Tax Act, 2017 by order dated 19th November, 2025, pursuant to a show cause notice dated 16th October, 2025. He approached the Orissa High Court seeking condonation of the delay in invoking the revocation remedy under the CGST/OGST Rules and restoration of his registration, expressing readiness to pay all tax, interest, late fee, penalty and other dues necessary for the Department to accept his pending returns. The petitioner relied on an earlier coordinate bench ruling of the same High Court in M/s. Mohanty Enterprises v. The Commissioner, CT & GST, Odisha, which had granted similar relief on comparable facts.

Issues Involved

  1. Whether the delay in invoking the proviso to Rule 23 of the Odisha GST Rules for revocation of cancelled registration can be condoned.
  2. Whether such condonation should be made conditional on the petitioner depositing all outstanding taxes, interest, late fee and penalty.
  3. Whether the ratio in Mohanty Enterprises applies squarely to the petitioner's facts.

Petitioner's Arguments

  • The petitioner was ready and willing to pay the entire tax, interest, late fee, penalty and any other sum required for his returns to be accepted by the Department.
  • The identical relief had already been granted by a coordinate bench in M/s. Mohanty Enterprises v. The Commissioner, CT & GST, Odisha, Cuttack, and the petitioner's claim, including the prayer for condonation of delay, was covered by that precedent.

Respondent's Arguments

  • The Senior Standing Counsel for the CGST and Central Excise Department appeared and did not raise any specific objection distinguishing the facts from the Mohanty Enterprises precedent.

Court Order / Findings

  • The Court reproduced paragraph 2 of its earlier order in M/s. Mohanty Enterprises, condoning delay in invoking the proviso to Rule 23 of the OGST Rules, subject to the petitioner depositing all taxes, interest, late fee and penalty due and complying with other formalities.
  • A likewise direction was made in the present case, and the petitioner was held entitled to relief in the interest of revenue, since the outcome secures payment of outstanding dues while restoring a functioning, compliant taxpayer to the GST system.
  • The writ petition was disposed of accordingly, directing the competent authority to consider the petitioner's revocation application in accordance with law upon compliance with the payment conditions.

Important Clarification

  • Delay in filing a revocation application against a GST registration cancellation order can be condoned by courts where the taxpayer undertakes to clear all outstanding tax, interest, late fee and penalty.
  • Such relief serves the interest of revenue as much as the taxpayer, since it converts a non-compliant, deregistered entity back into a return-filing, tax-paying registrant.
  • This approach has become a consistent line of relief across Orissa High Court GST registration-cancellation matters wherever the assessee expresses genuine willingness to regularise compliance.

Sections Involved

  • Section 29, CGST Act, 2017 – governs cancellation of GST registration for specified defaults, including non-filing of returns.
  • 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 decision favours the assessee. The delay in seeking revocation was condoned and the petitioner permitted to pursue restoration of registration, subject to clearing all outstanding dues, in the interest of revenue.

Case Details

High Court of Orissa at Cuttack; W.P.(C) No.19182 of 2026; Dibyasen Behera vs The Principal Commissioner, CGST and Central Excise, Bhubaneswar and Another; Coram: Chief Justice Harish Tandon and Justice Murahari Sri Raman; Order dated 06.07.2026.

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