Case Title: M/s. Babulu Patel v. Commissioner GST & Central Excise and Others
Court: High Court of Orissa, Cuttack
Petition No.: W.P.(C) No. 3995 of 2025
Date of Judgment: 13 February 2025
Category: Revocation of GST Registration
Relevant Provisions: Section 29 and Section 30 of the CGST Act, 2017; Rule 23 of the CGST/OGST Rules, 2017
Facts (Para 1)
The petitioner, M/s. Babulu Patel of Sundargarh, challenged the cancellation of GST registration through a show cause notice dated 6 February 2024 and an order dated 10 April 2024 passed under the Central Goods and Services Tax Act, 2017. The petitioner expressed readiness to pay all outstanding tax, interest, penalty, and late fee amounts necessary for acceptance of pending returns. Counsel for the petitioner relied on the earlier coordinate Bench ruling in M/s. Mohanty Enterprises v. Commissioner, CT & GST, Odisha [W.P.(C) No. 30374 of 2022, Order dated 16 November 2022], asserting that the present case was covered by the same precedent regarding condonation of delay under Rule 23 of the OGST Rules.
Questions before the Court
Whether the petitioner, despite delay in applying for revocation of cancelled GST registration, could be granted relief by condoning the delay under Rule 23 of the OGST Rules, 2017 upon payment of tax dues and compliance with other formalities.
Observations (Para 3)
The Court noted the parallel circumstances with M/s. Mohanty Enterprises, where the coordinate Bench condoned delay in invoking Rule 23 and directed the authorities to consider the application for revocation once taxes, interest, penalties, and other dues were fully paid. The Bench emphasized that such relaxation was extended in the larger interest of revenue since the State gains when a business resumes compliance under GST rather than being excluded from the tax net.
Judgment (Paras 3–4)
Following the precedent, the Court condoned the delay and directed that the petitioner’s application for revocation of registration be considered in accordance with law, subject to deposit of all taxes, interest, late fee, penalty, and fulfillment of statutory formalities under Rule 23 of the OGST Rules. The writ petition was accordingly disposed of, granting the petitioner relief in the interest of revenue.
Table of Cases Referred
| Case Name | Citation / W.P. No. | Court | Date | Verdict |
|---|---|---|---|---|
| M/s. Mohanty Enterprises v. Commissioner, CT & GST, Odisha, Cuttack and others | W.P.(C) No. 30374 of 2022 | Orissa High Court | 16 Nov 2022 | Delay condoned; revocation to be considered upon payment of dues under Rule 23. |
Between Fine Lines
This judgment underscores that GST registration cancellation can be reversed where the taxpayer demonstrates bona fide intent to comply by clearing all dues. Courts continue to adopt a liberal approach under Rule 23 to reintegrate businesses into the tax system, prioritizing revenue collection and voluntary compliance over procedural rigidity.
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