Revocation of GST Cancellation Allowed on Payment of Dues

Court: High Court of Orissa at Cuttack
Case Title: M/s. Binita Readymade Traders v. CT and GST Officer, Cuttack-1 City Circle
Petition Number: W.P.(C) No. 30035 of 2024
Relevant Section: Rule 23 of OGST Rules, 2017
Category of Dispute: Registration Cancellation / Revocation
Date of Judgement: 04 December 2024
Relevant Provision: Rule 23 of Odisha Goods and Services Tax Rules, 2017

🧾 Facts of the Case

[Para 1]
The petitioner, M/s. Binita Readymade Traders, challenged the show cause notice dated 20.11.2021 and the cancellation order dated 30.11.2021 issued under the Odisha GST Act, 2017. The petitioner expressed willingness to pay all dues including tax, interest, late fee, and penalty in order to have its returns accepted and registration revived.

❓ Question(s) in Consideration

[Para 1-3]
Whether the delay in invoking the proviso to Rule 23 of the OGST Rules for revocation of registration cancellation can be condoned, and whether relief can be granted upon fulfillment of tax liabilities.

🔍 Observation of the Court

[Para 3]
The Court noted that the petitioner’s case was similar to the precedent in M/s. Mohanty Enterprises v. Commissioner, CT & GST, Odisha, where delay was condoned and revival of registration was allowed upon fulfillment of dues and procedural compliance. The Court also noted that the same government counsel had appeared in both matters, indicating consistency in departmental stance.

🏛️ Judgement of the Court

[Para 3-4]
The Court allowed the writ petition. Delay in invoking Rule 23 proviso was condoned. The petitioner was directed to deposit all outstanding dues including tax, interest, late fee, and penalty and comply with procedural formalities. The revocation application is to be considered in accordance with law.

📌 Between Fine Lines

• Registration cancellation can be reversed if the assessee pays all dues.

• Delay in applying for revocation under Rule 23 can be condoned by the High Court.

• The ruling aligns with the precedent set in M/s. Mohanty Enterprises.

• Court balanced procedural lapses against the interest of revenue collection.

• Relief depends on strict fulfillment of payment and filing obligations.

📚 Summary of Referred Cases