Case Title: Kangresh Gauda v. The Commissioner, CGST, CX & Customs, Bhubaneswar and Another
Court: High Court of Orissa at Cuttack
Petition Number: W.P.(C) No. 4108 of 2025
Category: GST Registration Revocation – Delay Condonation
Date of Judgment: 13 February 2025
Relevant Sections: Section 29(2)(c) of the CGST Act, 2017; Rule 23 of the CGST Rules, 2017
Facts (Para 1):
The petitioner’s GST registration was cancelled by order dated 2 September 2023 following a show-cause notice dated 9 May 2023 under Section 29(2)(c) of the CGST Act, 2017. The petitioner, represented by Mr. G. K. Roy Choudhury, contended that he was ready and willing to pay the outstanding tax, interest, late fees, and penalties for the department to accept his pending returns. He sought condonation of delay in applying for revocation of registration cancellation, relying on the coordinate Bench’s decision in M/s Mohanty Enterprises v. Commissioner, CT & GST, Odisha, Cuttack (W.P.(C) No. 30374 of 2022, Order dated 16 Nov 2022).
Questions for Consideration:
Whether the delay in applying for revocation of GST registration cancellation could be condoned under Rule 23 of the CGST Rules when the petitioner was willing to pay all dues and comply with statutory formalities.
Observations (Paras 2–3):
The Court noted that the Senior Standing Counsel for the Department, Mr. R. Chimanka, had also appeared in M/s Mohanty Enterprises (supra), where similar relief had been granted. The coordinate Bench had condoned the delay under the proviso to Rule 23 of the OGST Rules, directing that the petitioner’s revocation application be considered upon payment of all taxes, interest, late fees, and penalties and compliance with procedural requirements.
Judgment (Para 3–4):
Following the precedent in M/s Mohanty Enterprises, the Bench comprising Hon’ble Mr. Justice Arindam Sinha (Acting Chief Justice) and Hon’ble Mr. Justice M. S. Sahoo condoned the delay and directed that, upon deposit of all statutory dues and completion of formalities, the petitioner’s application for revocation of cancellation be processed in accordance with law. The relief was granted “in the interest of revenue.”
Result: Writ petition disposed of with directions for condonation of delay and reconsideration of revocation.
Summary of Cases Referred:
| Case Name | Court & Petition No. | Issue | Verdict / Ratio |
|---|---|---|---|
| M/s Mohanty Enterprises v. Commissioner, CT & GST, Odisha, Cuttack and Others | Orissa High Court – W.P.(C) No. 30374 of 2022 | Delay in filing revocation of cancelled GST registration | Delay condoned; application to be considered if taxes, interest, and penalties are paid as per Rule 23 proviso |
Between Fine Lines (Practical Takeaway):
The ruling reaffirms that taxpayers who are willing to regularize past non-compliances by paying due taxes and following procedural requirements may be granted condonation of delay in revocation of cancelled GST registration. Courts continue to emphasize revenue interest over procedural rigidity, provided genuine intent for compliance exists.
Disclaimer – “The above summary is for academic purpose only; not formal legal opinion. Seek professional opinion before application. Author or publisher or website shall not be responsible for any usage in any form.”
