Assessee entitled to file revocation application if complies with all the requirements of paying taxes, interest, late fee and penalty dues

[CA Bimal Jain]

The Hon’ble Orissa High Court in the case of M/S. BADAJENA IRON & STEEL INDUSTRIES PRIVATE LIMITED VERSUS CT & GST OFFICER, BHUBANESWAR - 2024 (2) TMI 415 - ORISSA HIGH COURT held that the Assessee is entitled to file the revocation application against the cancellation of the GST registration, if the Assessee complies with the requirements of paying taxes, interest, late fee, penalty, etc. dues. Thus, the returns filed by the Petitioner would be accepted by the department.

Facts:

Badajena Iron and Steel Industries (P.) Ltd. (“the Petitioner”) had filed an application for revocation against cancellation of registration was rejected due to delay in filing it. The said revocation application was condoned.

The Revenue Department (“the Respondent”) contended that as long as delay in filing the revocation application is condoned and the Petitioner complies with all the requirements of paying taxes, interest, late fee, penalty etc. due, returns would be acceptable by the Department.

Hence, aggrieved by the circumstance, the present writ petition was filed by the Petitioner.

Issue:

Whether Petitioner can file the application for revocation of cancellation of the GST registration in case the Petitioner has delayed in filing it?

Held:

The Hon’ble Orissa High Court M/S. BADAJENA IRON & STEEL INDUSTRIES PRIVATE LIMITED VERSUS CT & GST OFFICER, BHUBANESWAR - 2024 (2) TMI 415 - ORISSA HIGH COURT held as under:

• 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.
• Held that, the Petitioner will have to produce the order of the present judgment before the proper officer, and he will open the portal to enable the Petitioner to file the GST returns. Hence, the writ was disposed of. 

Our Comments:

• Similar were the facts and issue before the Hon’ble Orrisa High Court in the case of RAKESH KUMAR SETHI VERSUS THE COMMISSIONER OF CENTRAL GOODS & SERVICE TAX, ROURKELA & OTHERS - 2024 (2) TMI 414 - ORISSA HIGH COURT and M/S. BHAGABATI PRASAD KAR VERSUS SUPERINTENDENT, CGST & CENTRAL EXCISE, KENDRAPARA CIRCLE, KENDRAPARA - 2024 (2) TMI 418 - ORISSA HIGH COURT , where the court held in the same lines.
• Earlier, the 49th GST Council Meeting was held on February 18, 2023 in New Delhi, wherein it was recommended to increase the time limit for applying for revocation of cancellation of GST registration from 30 days to 90 days. It was also recommended that the time limit be extended by the Commissioner/officer for a further period of not exceeding 180 days. Subsequently, the CBIC vide Notification No. 38/2023 – (Central Tax) dated August 04, 2022 has issued ‘the Central Goods and Services Tax (Second Amendment) Rules, 2023’ to further amend the Central Goods and Services Tax, Rules, 2017 (“the CGST Rules”) in to order to align with recommendations of the 49th GST Council Meeting.
• Under Section 30(1) of the Central Goods and Service Tax Act, 2017 (“the CGST Act”) read with Rule 23(1) of the CGST Rules an application for revocation of cancellation of GST registration can be applied.

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