GST registration revocation delay condoned as High Court directed reconsideration subject to payment of tax dues

Case Title: Saroj Kumar Maharana v. Superintendent, CGST and Central Excise, Bhubaneswar-II Division, Bhubaneswar-III Circle
Court: High Court of Orissa, Cuttack
Petition No.: W.P.(C) No. 25562 of 2024
Category: GST Registration – Revocation and Delay Condonation
Date of Judgment: 20 December 2024
Relevant Sections: Section 29 and Section 30 of the CGST/OGST Act, 2017; Rule 23 of the OGST Rules, 2017

Facts (Para 1–2)

The petitioner, Saroj Kumar Maharana, challenged the show cause notice dated 6 September 2023 and the consequent order dated 11 October 2023 cancelling his GST registration under the Odisha Goods and Services Tax Act, 2017. The petitioner expressed readiness to pay all outstanding tax, interest, late fee, penalty, and other statutory dues for acceptance of returns. He relied on the precedent M/s. Mohanty Enterprises v. Commissioner, CT & GST, Odisha, Cuttack [W.P.(C) No. 30374 of 2022], where the High Court had condoned the delay in filing the revocation application under Rule 23 of the OGST Rules (para 1).

Questions Before the Court

Whether the petitioner’s application for revocation of cancelled GST registration could be considered despite delay, provided he deposits all taxes and complies with necessary formalities under the OGST Act and Rules.

Observations (Para 3)

The Court referred to M/s. Mohanty Enterprises (supra), where it had condoned delay in invoking the proviso to Rule 23 of the OGST Rules and directed the department to consider the revocation application if the taxpayer paid all dues and fulfilled other requirements. The same rationale was applied here to balance taxpayer relief and revenue protection.

Judgment (Para 3–4)

Following the coordinate Bench’s order in M/s. Mohanty Enterprises, the Court condoned the delay in the petitioner’s revocation application. It directed that, subject to payment of all taxes, interest, late fees, penalty, and compliance with other formalities, the department must consider the petitioner’s revocation application in accordance with law. The writ petition was accordingly disposed of, granting relief in the interest of revenue.

Between Fine Lines

This ruling reinforces a liberal judicial approach towards delayed revocation applications under GST when taxpayers demonstrate bona fide intent to regularize compliance by paying dues. It provides a procedural safeguard against mechanical cancellations that hinder business continuity.

Summary of Case Referred

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