Delay In Filing Revocation Application On Cancellation Of GST Registration Condoned - Orissa High Court

Bijaya Kumar Singha Vs State Tax Officer (Orissa High Court)

Introduction: In a recent judgment, the Orissa High Court addressed the issue of delay in invoking the proviso to Rule 23 (application for revocation of cancellation of registration) of the Central Goods and Services Tax (CGST) Rules concerning the payment of tax, penalty, and interest. This article provides an in-depth analysis of the court’s decision and its implications.

Rule 23(1) of CGST Rules’2017: A registered person, whose registration is cancelled by the proper officer on his own motion, may submit an application for revocation of cancellation of registration, in FORM GST REG-21, to such proper officer, within a period of 30 days from the date of the service of the order of cancellation of registration “or within such time period as extended by the Additional Commissioner or the Joint Commissioner or the Commissioner, as the case may be, in exercise of the powers provided under the proviso to sub-section (1) of section 30,” at the common portal, either directly or through a Facilitation Centre notified by the Commissioner. (As amended vide notification no. 15/2021 - CT dated 18.05.2021).

Detailed Analysis: Bijaya Kumar Singha approached the Orissa High Court seeking relief regarding the delay in invoking the proviso to Rule 23 (application for revocation of cancellation of registration) of the CGST Rules. The court, considering the matter through hybrid mode, heard arguments from Mr. Sunil Mishra, the learned Standing Counsel for CT & GST.

Mr. Mishra informed the court that if the petitioner complies with all requirements, including paying taxes, interest, late fees, and penalties, the petitioner’s 3B Return Form would be accepted by the authorities. In light of this, the court condoned the delay in invoking the proviso to Rule 23 (application for revocation of cancellation of registration) of the CGST Rules.

The court directed the petitioner to deposit all taxes, interest, late fees, penalties, and fulfill other formalities. Upon compliance, the petitioner’s application for revocation would be considered as per the law. A copy of the court’s order was to be presented to the proper officer, who would then enable the petitioner to file the GST return by opening the portal.

Conclusion: The Orissa High Court’s decision to condone the delay in invoking the proviso to Rule 23 (application for revocation of cancellation of registration) of the CGST Rules provides relief to taxpayers facing procedural issues. By allowing the petitioner to rectify the delay through compliance with due requirements, the court ensures a fair and equitable resolution. This judgment underscores the importance of balancing procedural adherence with facilitating taxpayer compliance within the ambit of GST regulations.

FULL TEXT OF THE JUDGMENT/ORDER OF ORISSA HIGH COURT

2.         Mr. Sunil Mishra, learned Standing Counsel (CT & GST) appearing on an advance notice states that as long as delay in filing the revocation application is condoned, and provided the Petitioner complies with all the requirements of paying the taxes, interest, late fee, penalty etc. due, the 3B Return Form filed by the Petitioner will be accepted by the Opposite Parties.

3.         In that view of the matter, the delay in Petitioner’s invoking the proviso to Rule 23 (application for revocation of cancellation of registration) of the Central Goods and Services Tax Rules (CGST 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 in accordance with law.

4.         A copy of this order will be produced by the Petitioner before the proper officer, and subject to the Petitioner complying with the above conditions, the proper officer will open the portal to enable the Petitioner to file the GST return.

5.         The writ petition is disposed of in the above terms.