GST Registration Cancellation Revoked Upon Compliance with Payment & Formalities

Case Name: Siddhi Vinayak Process v. Assistant Commissioner of State Tax, Cuttack and Another
Court: Orissa High Court
Petition Number: W.P.(C) No. 31952 of 2024
Category of Dispute: GST Registration Cancellation / Revocation
Date of Judgement: 20.12.2024
Relevant Sections: Rule 23 of the Odisha Goods and Services Tax Rules, 2017
CGST/OGST Provisions: Rule 23 (Revocation of cancellation of registration)

Facts of the Case

[Para 1]
The petitioner, Siddhi Vinayak Process, challenged a show cause notice dated 14.05.2024 and a subsequent cancellation order dated 26.06.2024, whereby its GST registration under the Odisha Goods and Services Tax Act, 2017, was cancelled.

The petitioner, through counsel, submitted willingness to deposit all statutory dues (tax, interest, late fee, penalty) and comply with all formalities for acceptance of returns. Reliance was placed on a prior judgment in M/s Mohanty Enterprises v. Commissioner, CT & GST, Odisha [W.P.(C) No. 30374 of 2022, dated 16.11.2022].

Questions in Consideration

[Para 1]
Whether the cancellation of GST registration could be revoked upon the petitioner’s readiness to pay dues and comply with formalities, despite the delay in filing for revocation.

Observation of the Court

[Para 3]
The Court reproduced and relied upon the judgment in M/s Mohanty Enterprises, where delay in invoking Rule 23 of OGST Rules was condoned. The Court noted that subject to payment of all dues and compliance with procedural requirements, the revocation application should be considered in accordance with law.

Judgement of the Court

[Para 4]
The High Court condoned the delay and directed the department to consider the revocation application of the petitioner upon due compliance (payment and procedural). The writ petition was disposed of accordingly in the interest of revenue.

✅ Between Fine Lines

1. GST registration cancellations can be challenged if the taxpayer is willing to regularize their defaults.

2. Courts are inclined to condone delays in revocation applications where dues are paid.

3. Reference to similar past judgments strengthens the plea for equitable relief.

4. Rule 23 of OGST Rules allows revocation, provided dues are cleared and formalities fulfilled.

5. This case reinforces the view that procedural delays should not defeat substantive compliance.

Summary of Referred Cases

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