Facts of the Case

The petitioner, Laxman Pangi, was issued a show cause notice dated 9th November 2022, followed by an order dated 7th February 2023 cancelling his GST registration under the Odisha Goods and Services Tax Act, 2017. The petitioner expressed readiness and willingness to pay the tax, interest, late fee, penalty and any other sum required to be paid so that his return could be accepted by the Department, and sought condonation of the delay in invoking the statutory revocation mechanism along with restoration of registration.

Issues Involved

  1. Whether the delay on the part of the petitioner in seeking revocation of the cancellation of GST registration could be condoned.
  2. Whether the petitioner's application for revocation was liable to be considered on merits upon compliance with statutory dues.

Petitioner's Arguments

  • The petitioner is ready and willing to pay the tax, interest, late fee, penalty and any other sum required to be paid for the return to be accepted by the Department.
  • The petitioner's claim, including the prayer for condonation of delay, is squarely covered by the coordinate Bench order in M/s. Mohanty Enterprises v. The Commissioner, CT & GST, Odisha, Cuttack and others (WP(C) No.30374 of 2022).

Respondent's Arguments

  • Learned Junior Standing Counsel appeared on behalf of the Department and did not dispute the applicability of the Mohanty Enterprises precedent to the facts of the case.

Court Order / Findings

  • The Court extracted paragraph 2 of the Mohanty Enterprises order, which condoned the delay in invoking the proviso to Rule 23 of the OGST Rules, subject to the petitioner depositing all taxes, interest, late fee, penalty etc. due and complying with other formalities, directing that the revocation application be considered in accordance with law.
  • Applying an identical direction to the present case, the Court held that the petitioner gets the relief in the interest of revenue.
  • The writ petition was disposed of on these terms.

Important Clarification

  • Courts have consistently taken a lenient, revenue-facilitating view towards delay in seeking revocation of GST registration cancellation where the assessee undertakes to clear all outstanding tax, interest, late fee and penalty, since restoring registration and collecting dues serves the interest of revenue better than a permanently cancelled registration.
  • Such relief is conditional – the assessee must actually comply with the deposit and other formalities before the revocation application is considered on merits.

Sections Involved

  • Rule 23, Odisha Goods and Services Tax Rules, 2017 – provides the procedure and timeline for an application seeking revocation of cancellation of registration.
  • Odisha Goods and Services Tax Act, 2017 – governing statute under which the registration was cancelled for non-compliance.

Decision – In Favour of

The petition is disposed of in favour of the Assessee, with the delay in seeking revocation condoned subject to deposit of all taxes, interest, late fee and penalty due, and the revocation application to be considered on merits.

Case Details

  • Court: High Court of Orissa at Cuttack
  • Case No.: WP(C) No.34206 of 2025
  • Coram: Hon'ble the Chief Justice Harish Tandon and Hon'ble Mr. Justice Murahari Sri Raman
  • Date of Order: 04.12.2025

Link to Download the Order

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