Orissa HC Grants Relief to GST Registrant, Orders Consideration of Revocation Application Despite Delay [Read Order]

The Orissa High Court, in a recent case, directed the GST authorities to consider revoking the cancellation of a GST registration upon payment of dues, despite procedural delays in filing such an application. The matter titled Asis Ranjan Prusty v. Assistant Commissioner of State Tax was heard by a Division Bench comprising Chief Justice Harish Tandon and Justice Murahari Sri Raman. The petition was taken up on May 9, 2025, through a hybrid mode.

The petitioner, Asis Ranjan Prusty, submitted that the challenge in the writ petition was directed against the show-cause notice dated November 14, 2023, and the subsequent cancellation order dated May 6, 2024, issued under the Odisha Goods and Services Tax (OGST) Act, 2017.

The petitioner’s GST registration was cancelled due to alleged non-compliance with return filing requirements, which had led to disruptions in his ability to conduct business operations legally. Counsel argued that the petitioner is ready and willing to make a complete payment of all outstanding statutory dues, including tax, interest, late fee, penalty, and any other amount as may be necessary to enable the return filings to be accepted by the Department.

GST on Real Estate & Works Contracts – Your Ultimate Guide to GST in the Real Estate Sector!, Click Here

In support of the relief sought, the petitioner placed reliance on the earlier decision of the coordinate Bench in M/s. Mohanty Enterprises v. The Commissioner, CT & GST, Odisha, dated 16th November 2022. In that case, the High Court had condoned the delay in invoking Rule 23 of the Odisha Goods and Services Tax Rules, 2017. It directed the authorities to consider the revocation application, subject to the assessee's full compliance.

The Bench reproduced the relevant excerpt from the Mohanty Enterprises order in its present ruling:

“In that view of the matter, the delay in Petitioner’s invoking the proviso to Rule 23 of the Odisha Goods and Services Tax Rules (OGST Rules) is condoned and it is directed that subject to the Petitioner depositing all the taxes, interest, late fee, penalty etc., due and complying with other formalities, the Petitioner’s application for revocation will be considered by law.”

Appearing for the Department, the departmental representative (DR) did not object to the petitioner’s stated willingness to comply with the tax and legal requirements. The department raised no further objections.

After hearing the arguments presented by both parties, the High Court observed that the facts of the present case were materially similar to those in Mohanty Enterprises, and that a similar direction was warranted to serve the broader interest of revenue collection and promote voluntary compliance.

The Court thus allowed the petitioner’s plea and ordered that the delay in invoking Rule 23 be condoned. The Department was directed to consider the petitioner’s application for revocation of GST registration, provided the petitioner deposits all taxes, interest, late fees, and penalties, and adheres to other procedural requirements. As a result, the writ petition was accordingly disposed of with this direction.

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates