Registration Cancellation Revived on Willingness to Pay Dues

Case Title: M/s. Sunita Parida v. State Tax Officer, Jagatsinghpur & Anr.
Court: High Court of Orissa at Cuttack
Petition No.: W.P.(C) No. 30235 of 2024
Category: GST Registration Cancellation / Revocation
Date of Judgment: 05.12.2024
Relevant Provisions: Section 29 & Section 30 of OGST Act, 2017; Rule 23 of OGST Rules, 2017

Facts of the Case (Para 1, 2 of Order)

• The petitioner’s GST registration was cancelled through show cause notice dated 16.01.2023 followed by order dated 16.02.2023.

• The petitioner expressed willingness to deposit tax, interest, late fee, penalty and other dues for acceptance of pending returns.

• Reliance was placed on earlier Orissa HC judgment in M/s. Mohanty Enterprises v. Commissioner, CT & GST, Odisha (W.P.(C) 30374/2022) where delay in filing revocation was condoned (Para 1).

Question(s) in Consideration (Para 1–3)

• Whether delay in invoking proviso to Rule 23 of OGST Rules for revocation of cancellation can be condoned.

• Whether petitioner is entitled to restoration of registration upon compliance with dues payment.

Observation of Court (Para 3)

• The Court noted the precedent in M/s. Mohanty Enterprises where delay was condoned in the interest of revenue.

• Extracted Para 2 of that judgment: “… delay in invoking proviso to Rule 23 is condoned, subject to depositing all dues, the revocation application to be considered in law.”

Judgment of Court (Para 3, 4)

• The Court applied the same principle and directed that petitioner’s delay stands condoned.

• Subject to depositing all dues and fulfilling formalities, the application for revocation of cancellation shall be considered.

• Writ petition was disposed of granting relief in line with earlier ruling (Mohanty Enterprises).

Between Fine Lines (Simplified Outcome in 5 Points)

1. GST registration was cancelled due to non-compliance.

2. Petitioner showed readiness to pay all pending dues.

3. Court referred to Mohanty Enterprises precedent where delay in revocation was condoned.

4. Delay was similarly condoned in this case to protect state revenue.

5. Registration can be restored after compliance with payment obligations.

Summary of Referred Cases

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