Facts of the Case

The Petitioner, Basanta Kumar Palita, held GST registration bearing GSTIN 21BYAPP8300D2Z0. The Opposite Party No.2 issued a Show Cause Notice dated 03.02.2020 under the Central Goods and Services Tax Act, 2017, alleging non-furnishing of returns for a continuous period of six months and calling for a response. The Petitioner claimed ill-health prevented timely filing but admittedly did not respond to the GSTR-3A notice, the REG-17 notice, or the personal hearing. Consequently, the registration was cancelled by order dated 14.02.2020, with effect from that date. Aggrieved, and having missed the statutory window for seeking revocation, the Petitioner approached the High Court invoking writ jurisdiction.

Issues Involved

  1. Whether the delay in filing an application for revocation of cancellation of registration beyond the period prescribed under Rule 23 of the OGST Rules, 2017 can be condoned.
  2. Whether the Petitioner can be permitted to revive the cancelled registration upon compliance with outstanding statutory dues.

Petitioner's Arguments

  • The reply to the Show Cause Notice was not duly considered by the Opposite Party No.2.
  • Default in furnishing returns occurred on account of the Petitioner's ill-health.
  • The Petitioner was willing to discharge his liability by depositing tax, interest, penalty and late fee as provided under Rule 23 of the OGST Rules, and to file the pending returns.
  • Relied on the Orissa High Court's order in Debendra Nayak v. The Commissioner, CT & GST, Odisha (W.P.(C) No.37451 of 2021, dated 02.12.2021), where a similarly situated assessee was given a chance to comply and revive the registration.

Respondent's Arguments

  • The delay in filing the revocation application requires condonation before any further relief can be considered.
  • The Petitioner must comply with statutory requirements by paying tax, interest and penalty along with late fee.
  • The Petitioner is also required to furnish all pending returns.

Court Order / Findings

  • The Court examined Section 30 of the CGST Act, 2017, governing revocation of cancellation of registration, and Rule 23 of the OGST Rules, 2017, which bars a revocation application where cancellation was for failure to furnish returns unless the returns are filed and dues paid.
  • Since both parties conceded on the point, the delay in invoking the proviso to sub-rule (1) of Rule 23 was condoned.
  • The Petitioner was directed to deposit all taxes, interest, penalty and late fee due, and comply with the requisite formalities.
  • Upon such compliance, the Petitioner's revocation application would be considered in accordance with law, and the department was directed to open the portal to enable filing of GST returns.
  • The writ petition was disposed of with these observations and directions.

Important Clarification

  • Delay in seeking revocation of a cancelled GST registration is not necessarily fatal; courts have shown willingness to condone it where the assessee undertakes to clear outstanding dues.
  • Rule 23's proviso conditions revocation on prior compliance — payment of tax, interest, penalty and late fee, and furnishing of returns — where cancellation followed non-filing of returns.
  • Relief of this kind is conditional, not absolute: revival of registration remains contingent on actual compliance, not merely on the Court's direction.

Sections Involved

  • Section 30, Central Goods and Services Tax Act, 2017 — provides for revocation of cancellation of registration on application by the registered person within the prescribed time, subject to an opportunity of hearing before rejection.
  • Rule 23, Odisha Goods and Services Tax Rules, 2017 — prescribes the manner and conditions for filing a revocation application, including the pre-condition of clearing dues where cancellation was for non-filing of returns.

Decision – In Favour of

Disposed of with directions, in favour of the Assessee — the delay was condoned and a conditional pathway to revive the registration was granted, subject to the Petitioner clearing all outstanding dues and complying with the formalities under Rule 23.

Case Details

  • Court: High Court of Orissa at Cuttack
  • Case No.: W.P.(C) No.4892 of 2022
  • Coram: Justice Jaswant Singh and Justice M.S. Raman
  • Date of Order: 22.02.2022
  • Parties: Basanta Kumar Palita vs The Commissioner, CT & GST, Odisha & Another

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