Facts of the Case

M/s. Sanjana Yadav's GST registration under the Odisha GST Act, 2017 was cancelled by an order dated 22 August 2023. The petitioner approached the Orissa High Court expressing readiness to pay all outstanding tax, interest, late fee, penalty and other dues so that the return forms could be accepted by the department, and sought condonation of the delay in seeking revocation, relying squarely on the coordinate bench decision in M/s. Mohanty Enterprises v. The Commissioner, CT & GST, Odisha (W.P.(C) No. 30374 of 2022), which had granted identical relief on similar facts.

Issues Involved

  1. Whether delay in invoking the proviso to Rule 23 of the Odisha GST Rules for revocation of registration cancellation can be condoned where the taxpayer undertakes to clear all outstanding dues.
  2. Whether the relief already granted in Mohanty Enterprises on parallel facts should be extended to this petitioner as well.

Petitioner's Arguments

  • The petitioner was ready and willing to pay all taxes, interest, late fee, penalty and other sums due, so that the return forms could be accepted and the registration restored.
  • The claim for relief, including condonation of delay, was covered squarely by the Mohanty Enterprises order and should be extended on parity.

Respondent's Arguments

  • The department's counsel appeared but raised no specific objection to extending parity with the Mohanty Enterprises order.

Court Order / Findings

  • The Court reproduced paragraph 2 of its Mohanty Enterprises order, which had condoned delay in invoking the proviso to Rule 23 of the OGST Rules and directed that, subject to the petitioner depositing all due taxes, interest, late fee and penalty and complying with other formalities, the revocation application would be considered in accordance with law.
  • It held that a like direction was warranted in this case as well, and that the petitioner would get the relief in the interest of revenue.
  • The writ petition was disposed of on these terms, adopting the earlier precedent rather than independently reasoning through the point.

Important Clarification

  • Delay in seeking revocation of a cancelled GST registration under the proviso to Rule 23 of the State GST Rules is routinely condoned by the Orissa High Court where the taxpayer unconditionally undertakes to clear all outstanding tax, interest, late fee and penalty and comply with other formalities.
  • Such relief is consistently framed as being granted 'in the interest of revenue', reflecting the High Court's practice of restoring cancelled registrations of taxpayers willing to pay up, rather than leaving 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. 16871 of 2025. Coram: Hon'ble The Chief Justice Harish Tandon and Hon'ble Mr. Justice Murahari Sri Raman. Date of Order: 11 July 2025.

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