Facts of the Case

The petitioner, Rahul Mohanty, challenged a show cause notice dated 23.10.2024 followed by an order dated 07.11.2024 cancelling his registration under the State Goods and Services Tax Act, 2017. The petitioner expressed readiness to pay the tax, interest, late fee, penalty and any other sum required for his return forms to be accepted by the department.

Issues Involved

  1. Whether the delay in invoking the proviso to Rule 23 of the OGST Rules for revocation of the cancellation of registration ought to be condoned.

Petitioner's Arguments

  • The petitioner relied on the coordinate Bench order in M/s. Mohanty Enterprises vs The Commissioner, CT & GST, Odisha, Cuttack (W.P.(C) No.30374 of 2022, dated 16.11.2022), submitting that his claim for condonation of delay was squarely covered by that decision.

Respondent's Arguments

  • The Additional Standing Counsel appeared for the department but did not seriously contest the applicability of the Mohanty Enterprises precedent.

Court Order / Findings

  • The Division Bench reproduced paragraph-2 of the Mohanty Enterprises order, condoning delay in invoking the proviso to Rule 23 of the OGST Rules subject to the petitioner depositing all taxes, interest, late fee and penalty due, and complying with other formalities.
  • A like direction was made in the present writ petition, the Court observing that the petitioner gets the relief "in the interest of revenue."
  • The writ petition was disposed of accordingly.

Important Clarification

  • Delay in seeking revocation of GST registration cancellation under the proviso to Rule 23 of the OGST Rules can be condoned where the taxpayer undertakes to clear all outstanding tax, interest, late fee and penalty, since restoring compliant taxpayers to the GST fold ultimately serves the interest of revenue.

Sections Involved

  • Rule 23, Odisha Goods and Services Tax Rules, 2017 — application for revocation of cancellation of registration.

Decision – In Favour of

In favour of the Assessee — delay condoned, with the revocation application to be considered on merits subject to payment of outstanding dues.

Case Details

Court: High Court of Orissa at Cuttack
Case No.: W.P.(C) No.24209 of 2025
Coram: Hon'ble the Chief Justice and Hon'ble Mr. Justice Murahari Sri Raman
Date of Order: 10.09.2025

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