M/S. Middlex, Puri vs. Commnr. Of State Tax, Banijyakar Bhawan, Cuttack

Facts

The petitioner, M/s. Middlex, Puri, challenged a show cause notice dated November 6, 2024, and the subsequent order dated December 17, 2024, passed by the Commissioner of State Tax, Cuttack, which cancelled their GST registration. The petitioner expressed willingness to pay all outstanding taxes, interest, late fees, penalties, and other dues along with their returns. They relied on a previous order by a coordinate bench in W.P.(C) No. 30374 of 2022 (M/s. Mohanty Enterprises v. The Commissioner, CT & GST, Odisha, Cuttack and others) which condoned delay in invoking a rule and directed consideration of revocation subject to deposit of dues. The department's counsel conceded that if the petitioner fulfilled their undertaking, the authority would act accordingly.

Held

The Court held that in view of the conceded position by the revenue and the petitioner's undertaking to pay all outstanding dues, the writ petition could be disposed of. The petitioner was directed to make the payments within two weeks. Upon such payment, the opposite party (Commissioner of State Tax) was directed to consider the application for revocation of the cancellation of the registration certificate within a period not later than six weeks from the date of the order. The Court effectively followed the precedent set by the coordinate bench, allowing for the potential revival of the petitioner's GST registration subject to their compliance with financial obligations.

Key Issues

1. Whether the petitioner's delay in complying with the requirements for revocation of GST registration cancellation should be condoned, considering their undertaking to pay all dues, as per the principle laid down in M/s. Mohanty Enterprises v. The Commissioner, CT & GST, Odisha, Cuttack and others? Petitioner's Argument: The petitioner argued that their situation is covered by the coordinate bench's order, which condoned delay and directed consideration of revocation upon deposit of dues. They are ready to pay all taxes, interest, late fees, and penalties. Revenue's Argument: The Additional Standing Counsel for the department, after reviewing the cited order, conceded that if the petitioner complies with the undertaking and deposits the amounts, the concerned authority shall take necessary action.