Facts of the Case

Prashanta Sethy's GST registration was cancelled under the Central Goods and Services Tax Act, 2017 by an order dated 18th August, 2023, pursuant to a show cause notice dated 9th November, 2022. The petitioner sought condonation of delay in seeking revocation of the cancellation, expressing readiness and willingness to pay all outstanding tax, interest, late fee, penalty and any other sum due, so that the pending GST returns could be accepted by the Department.

Issues Involved

  1. Whether the delay in invoking the proviso to Rule 23 of the CGST Rules for revocation of a cancelled registration can be condoned where the assessee undertakes to clear all statutory dues.

Petitioner's Arguments

  • The petitioner's client was ready and willing to pay the tax, interest, late fee, penalty and any other sum required for the pending return to be accepted by the Department.
  • Relied upon the order dated 16th November, 2022 of a coordinate Bench in M/s. Mohanty Enterprises v. The Commissioner, CT & GST, Odisha, Cuttack and others, W.P.(C) No. 30374 of 2022, and submitted the claim to relief, including condonation of delay, was squarely covered by it.

Respondent's Arguments

  • Learned Junior Standing Counsel for the Department appeared but did not seriously dispute the applicability of the Mohanty Enterprises order to the facts of the case.

Court Order / Findings

  • The Court reproduced paragraph-2 of the Mohanty Enterprises order, which condoned the delay in invoking Rule 23 and directed that, subject to the petitioner depositing all taxes, interest, late fee and penalty due and complying with other formalities, the application for revocation would be considered in accordance with law.
  • Applying an identical direction to the present case "in the interest of revenue", the Court disposed of the writ petition, granting the petitioner the same relief.

Important Clarification

  • Where a taxpayer whose GST registration has been cancelled is willing to clear all outstanding tax, interest, late fee and penalty, courts will routinely condone delay in invoking the proviso to Rule 23 of the CGST/OGST Rules and direct that the revocation application be considered on merits, subject to full payment of dues and compliance with other formalities — following the Mohanty Enterprises template that Odisha courts apply consistently.

Sections Involved

  • Rule 23, CGST/OGST Rules, 2017 – application for revocation of cancellation of registration, and the proviso permitting condonation of delay in filing such application.

Decision – In Favour of

Decided in favour of the Assessee. Delay condoned, subject to payment of all dues and compliance with formalities.

Case Details

  • Court: High Court of Orissa at Cuttack
  • Case No.: W.P.(C) No. 22270 of 2025
  • Coram: Hon'ble the Chief Justice and Hon'ble Mr. Justice Murahari Sri Raman
  • Date of Order: 19 August 2025

Link to Download the Order

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