GST registration revocation allowed as High Court condoned delay and directed consideration upon full tax payment

Case Title: M/s. Bijaya Kumar Parida v. Additional CT & GST Officer, Jajpur
Court: High Court of Orissa, Cuttack
Petition No.: W.P.(C) No. 4059 of 2025
Date of Judgment: 13 February 2025
Category: Revocation of GST Registration
Relevant Sections: Section 29 and Rule 23 of the OGST / CGST Rules, 2017

Facts (Para 1)

The petitioner, M/s. Bijaya Kumar Parida of Jajpur, challenged the show cause notice dated 3 January 2019 and the consequent cancellation order dated 15 January 2019 issued under the Central Goods and Services Tax Act, 2017. The petitioner expressed readiness to pay all outstanding dues — tax, interest, late fee, and penalty — so that the GST return filing could be accepted. Reliance was placed on the precedent M/s. Mohanty Enterprises v. Commissioner, CT & GST, Odisha, Cuttack [W.P.(C) No. 30374 of 2022, decided on 16 November 2022], where delay in filing an application for revocation was condoned and relief granted.

Questions for Consideration

Whether the petitioner, whose GST registration had been cancelled long ago, could be granted relief by condoning the delay in applying for revocation under Rule 23 of the OGST Rules and allowing restoration subject to payment of all dues.

Court’s Observations (Para 3)

The Bench referred to paragraph 2 of the earlier decision in M/s. Mohanty Enterprises (supra), where the delay in invoking the proviso to Rule 23 of the OGST Rules was condoned. The Court held that, in similar circumstances, the petitioner could be extended the same relief. The principle was that when the taxpayer is willing to clear all statutory dues, revenue interest is protected, and restoration of registration promotes tax compliance rather than default.

Judgment (Paras 3–4)

Following M/s. Mohanty Enterprises, the Court directed that the delay in seeking revocation be condoned. The petitioner must deposit all taxes, interest, late fees, and penalties due and comply with necessary formalities. Thereafter, the application for revocation is to be considered in accordance with law. The writ petition was disposed of with relief granted in the interest of revenue.

Summary of Cases Referred

Between Fine Lines

This decision reinforces that where a taxpayer demonstrates bona fide intent by offering to clear all statutory dues, procedural delays should not defeat substantive justice. Restoration of registration facilitates compliance and revenue collection rather than perpetuating default, aligning with the pro-revenue yet taxpayer-friendly stance of GST jurisprudence.

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