Orissa HC Negates Cancellation of GST Registration, Citing Precedent Pronounced by Coordinate Bench [Read Order]

The Orissa High Court allowed the revival of a cancelled Goods and service Tax (GST) registration, observing that the taxpayer was willing to comply with the statutory obligations, including payment of dues and completion of formalities. The ruling was made in the case of Bimal Chandra Behra v. State Tax Officer, CT & GST.

The petitioner, Bimal Chandra Behera, approached the High Court challenging the cancellation of his GST registration under the Odisha Goods and Services Tax Act, 2017. The cancellation was actualised from a show cause notice dated July 5, 2023, followed by a final cancellation order issued on October 17, 2023.

Appearing for the petitioner, the counsel submitted that the petitioner was ready and willing to deposit all dues, taxes, interest, late fees, and penalties, so that the department could accept his return filings. The counsel further argued that the matter was covered by an earlier judgement passed by the coordinate bench of the Orissa High Court in the case of M/S Mohanty Enterprises v. The Commissioner, CT & GST, Odisha, in which the court had condoned the delay in applying for the revocation of cancellation of GST registration.

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The departmental representative for the revenue did not raise any further objections, nor did he object to the application being considered in line with the Mohanty Enterprises ruling, thereby leaving the door open for similar treatment in the present case.

The division bench, comprising Chief Justice Harish Tandon and Justice Murahari Sri Raman, referred to the precedent set in Mohanty Enterprises and quoted paragraph 2 of the said judgment, which condoned delay under Rule 23 of the OGST rules. The Court observed that:

“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.”

Applying the same principle, the Court directed the tax department to consider the petitioner’s application for revocation of cancellation, subject to full compliance with tax payments and procedural requirements. As a result, the High Court disposed of the writ petition, allowing the petitioner to pursue the revocation of the cancelled registration through the law.

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