Tax Registration Cancellation Overturned: Petitioner Granted Chance to Settle Dues and Restore Compliance with Procedural Fairness

HC allowed petitioner's challenge to tax registration cancellation, directing department to consider revocation upon full payment of dues (tax, interest, late fees, penalties). Referencing prior precedent, court emphasized procedural fairness and revenue compliance, effectively providing an opportunity to rectify administrative non-compliance.

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Summary of High Court Judgment: ORISSA HIGH COURT

In the matter before the Orissa High Court, presided over by Hon'ble Justices Arindam Sinha and M.S. Sahoo, the petitioner, represented by Mrs. Z.M. Wallace, challenged a show cause notice dated January 3, 2024, and a subsequent order dated February 27, 2024, which canceled the petitioner's registration under the Odisha Goods and Services Tax Act, 2017. The petitioner expressed willingness to pay all dues, including tax, interest, late fees, and penalties, to have their return form accepted by the department.

Mrs. Wallace referenced a prior order dated November 16, 2022, from a coordinate Bench in the case of M/s. Mohanty Enterprises v. The Commissioner, CT & GST, Odisha, Cuttack, which condoned the delay in invoking the proviso to Rule 23 of the Odisha Goods and Services Tax Rules (OGST Rules). The court in that case directed that upon payment of all dues and compliance with formalities, the application for revocation of cancellation would be considered.

The court, in this instance, adopted a similar direction, granting relief to the petitioner in the interest of revenue. The writ petition was thereby disposed of.

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