Facts of the Case

Sachin Kumar Agarwal challenged the cancellation of his GST registration, which followed a show cause notice dated 26.10.2021 and a cancellation order dated 09.11.2021. He expressed readiness to pay the tax, interest, late fee, penalty and any other sum required for his return form to be accepted by the Department, and relied on the Orissa High Court's earlier order dated 16.11.2022 in M/s. Mohanty Enterprises vs The Commissioner, CT & GST, Odisha, seeking the same relief including condonation of delay.

Issues Involved

  1. Whether the delay in invoking the proviso to Rule 23 of the Odisha GST Rules for revocation of a registration cancelled nearly four years earlier can be condoned.
  2. Whether the terms already settled in Mohanty Enterprises ought to be extended to this petitioner as well.

Petitioner's Arguments

  • The petitioner submitted that his claim for relief, including condonation of delay, was squarely covered by the order in Mohanty Enterprises, and expressed unconditional willingness to clear all tax, interest, late fee and penalty dues.

Respondent's Arguments

  • The Additional Standing Counsel for the State and the Junior Standing Counsel for the Central Revenue appeared for the respondents; the order does not record any specific objection to extending the Mohanty Enterprises formula to the petitioner.

Court Order / Findings

  • The Court reproduced paragraph 2 of the Mohanty Enterprises order, which condoned the delay in invoking the proviso to Rule 23 of the OGST Rules and directed that, subject to the petitioner depositing all taxes, interest, late fee, penalty and other dues and complying with other formalities, the revocation application would be considered in accordance with law.
  • Making a “likewise direction” in the present case, the Court held the petitioner gets the relief, noting this also served the interest of revenue by bringing a defaulting registrant back into compliance.
  • The writ petition was disposed of on these terms.

Important Clarification

  • Delay in seeking revocation of a cancelled GST registration is not necessarily fatal — where the taxpayer is willing to clear all dues in full and comply with formalities, courts treat restoration of registration as serving the interest of revenue itself, and will condone even lengthy delay in invoking Rule 23 of the State GST Rules on that basis.

Sections Involved

  • Rule 23, Odisha Goods and Services Tax Rules, 2017 (proviso) – revocation of cancellation of registration, including condonation of delay in filing the application.
  • Section 29, Central Goods and Services Tax Act, 2017 – cancellation of registration, the order under challenge.

Decision – In Favour of

Disposed of with directions; in favour of the Assessee, with delay condoned subject to full payment of tax, interest, late fee and penalty dues.

Case Details

  • Court: High Court of Orissa at Cuttack
  • Case No.: WP(C) No.23139 of 2025
  • Coram: Chief Justice Harish Tandon and Justice Murahari Sri Raman
  • Date of Order: 26.08.2025

Link to Download the Order

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