Facts of the Case

The petitioner's GST registration under the CGST Act, 2017 was cancelled by order dated 31st August 2023 pursuant to a show-cause notice dated 6th July 2022. The petitioner sought condonation of the delay in invoking the revocation mechanism under the proviso to Rule 23 of the Odisha GST Rules, expressing readiness to pay all tax, interest, late fee, penalty and other dues necessary to have the return accepted, relying on an identical direction earlier granted by a coordinate Bench in M/s. Mohanty Enterprises v. The Commissioner, CT & GST, Odisha.

Issues Involved

  1. Whether the delay in seeking revocation of cancellation of GST registration under Rule 23 of the OGST Rules should be condoned where the taxpayer is willing to clear all outstanding dues.

Petitioner's Arguments

  • The claim for relief, including condonation of delay in invoking Rule 23, was squarely covered by the coordinate Bench's order in M/s. Mohanty Enterprises, where similar delay was condoned subject to full payment of dues.

Respondent's Arguments

  • None specifically opposing on record; the Senior Standing Counsel for CGST & Central Excise appeared for the opposite party.

Court Order / Findings

  • Adopting the reasoning in M/s. Mohanty Enterprises, the Court held that the delay in invoking the proviso to Rule 23 of the OGST Rules is condoned, and directed that, subject to the petitioner depositing all taxes, interest, late fee, penalty and other dues and complying with other formalities, the application for revocation would be considered in accordance with law.
  • The writ petition was disposed of granting the petitioner relief in the interest of revenue.

Important Clarification

  • Delay in applying for revocation of a cancelled GST registration under Rule 23 of the GST Rules can be condoned where the taxpayer undertakes to clear all outstanding tax, interest, late fee and penalty, since bringing a defaulting but compliant taxpayer back into the GST fold ultimately serves the interest of revenue.

Sections Involved

  • Rule 23, Odisha GST Rules, 2017 -- revocation of cancellation of registration.
  • Cancellation of registration provisions under the Central Goods and Services Tax Act, 2017.

Decision – In Favour of

Assessee. Delay in seeking revocation was condoned, subject to full payment of outstanding dues.

Case Details

High Court of Orissa at Cuttack; WP(C) No.31589 of 2025; Coram: Chief Justice Harish Tandon and Justice M.S. Raman; Order dated 14.11.2025.

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