Facts of the Case

The petitioner, Bijay Mehta, had his registration under the Odisha Goods and Services Tax Act, 2017 cancelled by an order dated 22nd June, 2023, passed in furtherance of a show cause notice dated 9th November, 2022. Aggrieved, the petitioner approached the High Court, expressing readiness and willingness to pay the tax, interest, late fee, penalty and any other sum due so that his return could be accepted by the Department and his registration restored. The petitioner relied on an earlier co-ordinate Bench order dated 16th November, 2022 in M/s. Mohanty Enterprises v. The Commissioner, CT & GST, Odisha, Cuttack and others (W.P.(C) No.30374 of 2022), submitting that his case, including the prayer for condonation of delay, was squarely covered by that precedent.

Issues Involved

  1. Whether the delay in the petitioner invoking the proviso to Rule 23 of the Odisha Goods and Services Tax Rules for revocation of cancellation of registration could be condoned.
  2. Whether the petitioner's application for revocation deserved consideration subject to compliance with outstanding statutory dues.

Petitioner's Arguments

  • The petitioner was ready and willing to pay the tax, interest, late fee, penalty and any other sum required for the return to be accepted.
  • The facts were identical to M/s. Mohanty Enterprises, where the Court had condoned the delay in invoking Rule 23 and directed consideration of the revocation application on deposit of dues.
  • The relief granted in that precedent should follow in the present case as well.

Respondent's Arguments

  • The Junior Standing Counsel appeared for the State Revenue but did not seriously contest the applicability of the Mohanty Enterprises precedent to the facts of the case.

Court Order / Findings

  • The Division Bench reproduced paragraph 2 of its earlier order in M/s. Mohanty Enterprises, which had condoned the delay in invoking the proviso to Rule 23 of the Odisha Goods and Services Tax Rules and directed that, subject to the petitioner depositing all taxes, interest, late fee, penalty etc. due and complying with other formalities, the application for revocation would be considered in accordance with law.
  • The Court held that a like direction was warranted in the present writ petition, and that the petitioner would get the relief "in the interest of revenue."
  • The writ petition was accordingly disposed of.

Important Clarification

  • Where a registered person is willing to clear all outstanding tax, interest, late fee and penalty, courts are inclined to condone delay in seeking revocation of cancellation of GST registration under Rule 23 of the OGST Rules, since restoration on payment of dues serves the interest of revenue rather than defeating it.
  • Such relief is conditional — the revenue authority must still examine and decide the revocation application on merits and in accordance with law once compliance is made.

Sections Involved

  • Rule 23 of the Odisha Goods and Services Tax Rules, 2017 — prescribes the procedure and time-limit for an application seeking revocation of cancellation of registration, with a proviso permitting condonation of delay in appropriate cases.
  • Odisha Goods and Services Tax Act, 2017 — the substantive statute under which the petitioner's registration was cancelled and sought to be restored.

Decision – In Favour of

Disposed of in favour of the Assessee, with the delay in seeking revocation condoned, subject to the petitioner depositing all outstanding tax, interest, late fee and penalty and complying with other formalities.

Case Details

Court: High Court of Orissa at Cuttack
Case No.: WP(C) No.21946 of 2025
Coram: The Hon'ble the Chief Justice Harish Tandon and Hon'ble Mr. Justice Murahari Sri Raman
Date of Order: 19th September, 2025

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