Facts of the Case

Tapan Kumar Malik's GST registration under the Odisha Goods and Services Tax Act, 2017 was cancelled by an order dated 8th January, 2025, following a show cause notice dated 8th July, 2024, issued by the Assistant Commissioner of State Tax, CT & GST Circle, Jajpur. The petitioner expressed readiness to pay all tax, interest, late fee, penalty and any other sum required for his returns to be accepted, and sought the benefit of the Court's earlier ruling in M/s. Mohanty Enterprises vs. The Commissioner, CT & GST, Odisha, Cuttack, which had condoned delay in invoking the proviso to Rule 23 of the OGST Rules on similar conditions.

Issues Involved

  1. Whether the delay in seeking revocation of the petitioner's cancelled GST registration, under the proviso to Rule 23 of the OGST Rules, ought to be condoned on his undertaking to clear all outstanding statutory dues.
  2. Whether the direction previously given in M/s. Mohanty Enterprises vs. The Commissioner, CT & GST, Odisha should be replicated in the present case.

Petitioner's Arguments

  • The petitioner was ready and willing to pay the tax, interest, late fee, penalty and any other sum required to be paid for his returns to be accepted by the Department.
  • His claim to relief, including the prayer for condonation of delay in invoking the proviso to Rule 23 of the OGST Rules, was covered by the Court's own order in M/s. Mohanty Enterprises vs. The Commissioner, CT & GST, Odisha and others.

Respondent's Arguments

  • The Additional Standing Counsel appeared on behalf of the Department but did not press any substantive objection distinct from the safeguards already built into the Mohanty Enterprises formula (full payment of dues as a precondition).

Court Order / Findings

  • The Court reproduced paragraph 2 of its earlier order in M/s. Mohanty Enterprises, which had condoned the delay in invoking Rule 23 subject to the petitioner depositing all taxes, interest, late fee and penalty due and complying with other formalities.
  • Applying the same direction to the present facts, the Court held that the petitioner would get the relief in the interest of revenue, condoning the delay and directing that the application for revocation of cancellation be considered in accordance with law upon compliance with the stated conditions.
  • The writ petition was disposed of on these terms.

Important Clarification

  • The Orissa High Court applies a consistent, template-based approach (traceable to Mohanty Enterprises) across multiple cases to conditionally restore GST registrations cancelled for procedural defaults, provided the assessee undertakes to clear all outstanding tax, interest, late fee and penalty.
  • Such conditional restoration is treated by the Court as being in the interest of revenue itself, since it brings a previously non-compliant taxpayer back within the formal GST system rather than leaving the registration permanently cancelled.

Sections Involved

  • Rule 23, Odisha GST Rules, 2017 — governs revocation of cancellation of registration, including the proviso permitting condonation of delay in appropriate cases.
  • Section 30, CGST/OGST Act, 2017 — substantive provision on revocation of cancellation of GST registration.

Decision – In Favour of

The decision is in favour of the assessee (Tapan Kumar Malik). The delay in seeking revocation was condoned and the Department directed to consider the revocation application on payment of all outstanding dues.

Case Details

High Court of Orissa at Cuttack; W.P.(C) No.16756 of 2025; Coram: Hon'ble The Chief Justice Harish Tandon and Hon'ble Mr. Justice Murahari Sri Raman; Order dated 23.06.2025.

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