Delay in GST registration revocation may be condoned when dues are cleared and prescribed formalities are met

Delay in invoking the proviso to Rule 23 of the Odisha GST Rules for revocation of cancellation of GST registration may be condoned where the taxpayer undertakes to clear tax, interest, late fee, penalty and other dues and to comply with the prescribed formalities. The HC followed a coordinate Bench approach and treated such compliance as sufficient to consider the revocation request in accordance with law. Relief was granted on that basis, in the interest of revenue, with the revocation application to be examined after the required deposits and procedural compliance.

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Issues: Whether the delay in invoking the proviso to Rule 23 of the Odisha Goods and Services Tax Rules, 2017 for revocation of cancellation of GST registration should be condoned and the petitioner be granted consequential relief.

Analysis: The relief was considered on the footing that the petitioner expressed readiness to pay tax, interest, late fee, penalty and other dues required for acceptance of the return form. The Court followed the coordinate Bench order relied upon before it and applied the same approach, namely that delay in making the revocation request may be condoned when the petitioner complies with the monetary and other formal requirements. The direction was made in the interest of revenue.

Conclusion: The delay was condoned and the petitioner was granted relief, with the revocation request to be considered upon compliance with the required deposits and formalities.

Ratio Decidendi: Delay in seeking revocation of cancellation of GST registration may be condoned where the taxpayer undertakes to clear the dues and comply with the prescribed formalities, so that the matter can be considered in accordance with law in the interest of revenue.

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