Facts of the Case

Manas Chandra Sahoo's GST registration under the Odisha GST Act, 2017 was cancelled by an order dated 8 January 2025, pursuant to a show cause notice dated 6 November 2024. The petitioner approached the Orissa High Court expressing readiness and willingness to pay all outstanding tax, interest, late fee, penalty and any other sum required for the return forms to be accepted by the department, and sought condonation of the delay in seeking revocation, relying on an earlier coordinate bench order in M/s. Mohanty Enterprises v. The Commissioner, CT & GST, Odisha (W.P.(C) No. 30374 of 2022).

Issues Involved

  1. Whether delay in invoking the proviso to Rule 23 of the Odisha GST Rules for revocation of a cancelled GST registration can be condoned where the taxpayer is willing to clear all outstanding dues.
  2. Whether the relief granted in an earlier coordinate bench decision on identical facts should be extended to a similarly-placed taxpayer.

Petitioner's Arguments

  • The petitioner was ready and willing to pay all taxes, interest, late fee, penalty and other sums due so that the returns could be accepted and the registration restored.
  • The claim for relief, including condonation of delay, was directly covered by the earlier order in Mohanty Enterprises on identical facts and should be extended in like manner.

Respondent's Arguments

  • No specific opposition to extending the Mohanty Enterprises direction was placed on record; the department appeared through counsel without contesting the parity claimed.

Court Order / Findings

  • The Court reproduced paragraph 2 of its earlier order in Mohanty Enterprises, which had condoned delay in invoking the proviso to Rule 23 of the OGST Rules and directed that, subject to depositing all taxes, interest, late fee, penalty etc. and complying with other formalities, the application for revocation would be considered in accordance with law.
  • It held that a like direction should be made in the present case, granting the petitioner relief in the interest of revenue given the undertaking to clear all dues.
  • The writ petition was accordingly disposed of on these terms, without further elaboration of independent reasoning beyond adopting the earlier ruling.

Important Clarification

  • Delay in seeking revocation of a cancelled GST registration under the proviso to Rule 23 of the State GST Rules can be condoned where the taxpayer unconditionally undertakes to pay all outstanding tax, interest, late fee and penalty and comply with other formalities.
  • Such relief is explicitly said to be granted 'in the interest of revenue' — recognising that restoring a compliant, paying taxpayer to the GST system benefits the exchequer rather than leaving the registration cancelled and dues unrecovered.

Sections Involved

  • Rule 23, Odisha GST Rules, 2017 (proviso) – governs delayed applications for revocation of cancellation of GST registration.
  • Odisha Goods and Services Tax Act, 2017 – the governing statute under which the registration was cancelled and its revocation sought.

Decision – In Favour of

The decision is in favour of the assessee, with the department directed to consider the revocation application in accordance with law upon the petitioner clearing all outstanding dues.

Case Details

Court: High Court of Orissa at Cuttack. Case No.: W.P.(C) No. 27531 of 2025. Coram: Hon'ble The Chief Justice Harish Tandon and Hon'ble Mr. Justice Murahari Sri Raman. Date of Order: 25 September 2025.

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