Taxpayer Willing to Pay GST Dues and Interest: Orissa HC Condones Delay in Filing Revocation of GST Cancellation [Read Order]

In a recent order, the Orissa High Court allowed the revocation of GSTregistration cancellation for a taxpayer who expressed readiness to pay all outstanding dues. The court condoned the delay in filing the revocation application, stating that the petitioner’s willingness to comply with statutory requirements served the interest of revenue.

How to deal with GST special audit and departmental audit? Register Now

Ajit Kumar Parida, the petitioner, challenged a show cause notice dated 21.08.2019 and a subsequent cancellation order dated 12.09.2019, which had resulted in the cancellation of his GST registration under the Odisha Goods and Services Tax Act, 2017. The petitioner approached the High Court seeking a direction to restore his registration, despite the delay in filing the application for revocation.

The petitioner’s counsel argued that the delay was not deliberate and that the petitioner was prepared to pay all dues, including tax, interest, late fee, and penalty. The petitioner’s counsel relied on an earlier decision of the same court in M/s. Mohanty Enterprises v. Commissioner, CT & GST, Odisha, where the court had condoned a similar delay and directed the department to process the revocation request upon payment of dues.

The department’s counsel did not oppose the relief and participated in the hearing. The department’s counsel submitted that the department would abide by the court’s directions if the petitioner fulfilled the necessary conditions.

A division bench led by Chief Justice Harish Tandon and Justice M.S. Raman referred to the precedent in M/s. Mohanty Enterprises and applied the same reasoning to the present case. The court stated that the delay in invoking the proviso to Rule 23 of the OGST Rules could be condoned, and the revocation request could be processed if all dues were paid and legal formalities complied with.

The court directed the department to consider the petitioner’s application for revocation of cancellation in accordance with law, provided that the petitioner deposits all applicable taxes, interest, penalties, and late fees. The writ petition was accordingly disposed of.

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