Sangram Mallik vs. Chief Commissioner, CGST, Central Excise And Customs

Facts

The Petitioner, Sangram Mallik, challenged a show cause notice dated 06.11.2024 and an order dated 03.02.2025 passed by the Chief Commissioner, CGST, Central Excise & Customs, Bhubaneswar, which cancelled his GST registration. The Petitioner expressed willingness to pay all outstanding taxes, interest, late fees, and penalties. He relied on a coordinate bench's order in W.P.(C) No.30374 of 2022 (M/s. Mohanty Enterprises Vrs. The Commissioner, C.T & G.S.T, Odisha, Cuttack and Ors.) where delay in invoking a rule was condoned subject to deposit of dues. The Revenue conceded that if the Petitioner complied with the undertaking, the authority would act accordingly.

Held

The Court held that the Petitioner's undertaking to pay all outstanding taxes, interest, late fee, penalty, and any other sum required, along with the return, was accepted. The Court relied on the conceded position of the Revenue and the precedent set in M/s. Mohanty Enterprises. The Petitioner was directed to make the payments within two weeks. Upon such payment, the Opposite Party (Revenue) was directed to consider the application for revocation of the cancellation of the registration certificate within six weeks from the date of the order. The Writ Petition was disposed of in light of these directions.

Key Issues

1. Whether the Petitioner's delay in complying with the requirements for revocation of GST registration cancellation should be condoned, considering his undertaking to pay all dues. (Question of law and fact, turning on the proviso to Rule 23 of the Odisha Goods and Services Tax Rules, 2017). Petitioner's arguments: The Petitioner argued that his situation is covered by the order in M/s. Mohanty Enterprises, which directed consideration of revocation applications upon deposit of all dues, including condonation of delay. He is ready to pay all taxes, interest, late fee, penalty, and other sums required. Revenue's arguments: The Revenue, after perusing the cited order, conceded that if the Petitioner fulfills his undertaking and deposits the amounts, the concerned authority shall proceed as required.