Facts of the Case

M/s. Hemanta Charan Patra's registration under the Central Goods and Services Tax Act was cancelled by an order dated 09.10.2023, pursuant to a show cause notice dated 06.09.2023. Undertaking to pay the tax, interest, late fee, penalty and any other sum due, the petitioner sought condonation of delay in invoking the proviso to Rule 23 of the OGST Rules, 2017 before the Orissa High Court, relying on the order in M/s. Mohanty Enterprises v. The Commissioner, CT & GST, Odisha, Cuttack (W.P.(C) No.30374 of 2022, dated 16.11.2022).

Issues Involved

  1. Whether the delay in invoking Rule 23's proviso for revocation of a CGST registration cancellation can be condoned where the assessee is willing to clear all dues.

Petitioner's Arguments

  • The claim for relief, including condonation of delay, stood covered by the earlier order in M/s. Mohanty Enterprises.
  • The petitioner was ready and willing to pay the tax, interest, late fee and penalty due for the return to be accepted.

Respondent's Arguments

  • Standing Counsel for both State and Central Revenue appeared; no separate opposition to the relief sought is recorded.

Court Order / Findings

  • Reproduced paragraph 2 of the Mohanty Enterprises order, condoning the delay in invoking Rule 23 subject to the petitioner depositing all taxes, interest, late fee, penalty and other dues, and complying with other formalities, for the revocation application to be considered in accordance with law.
  • Made a like direction in the present case, holding that the petitioner gets the relief in the interest of revenue.
  • Disposed of the writ petition accordingly.

Important Clarification

  • The Orissa High Court's settled Mohanty Enterprises formula — condoning delay under the proviso to Rule 23 of the OGST Rules for a revocation application, subject to clearing all outstanding dues — applies equally to registrations cancelled under the Central GST Act, and continues to be extended across individual petitioners raising the identical grievance.

Sections Involved

  • Rule 23, OGST Rules, 2017 (proviso) — condonation of delay in applying for revocation of cancellation of registration.
  • Section 29, CGST Act, 2017 — cancellation of registration.

Decision – In Favour of

In favour of the Assessee.

Case Details

High Court of Orissa at Cuttack; W.P.(C) No.17308 of 2025; Coram: Chief Justice Harish Tandon & Justice Murahari Sri Raman; Order dated 01.07.2025.

Link to Download the Order

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