Dwaraka Jewellers, Bhubaneswar vs. Superintendent, CGST And Central Excise, Bhubaneswar

Held

The Court held that the petitioner's prayer for relief, including condonation of delay, was covered by the precedent set in M/s. Mohanty Enterprises. The reasoning was based on the petitioner's undertaking to pay all outstanding dues and the revenue's concession. The Court directed the petitioner to make the payments as undertaken within two weeks. Upon such compliance, the opposite party (Superintendent, CGST & Central Excise) was directed to consider the petitioner's application for revocation of the cancellation of their registration certificate within a period not later than six weeks from the date of the order. The Court found that the petitioner's willingness to clear all dues and the department's concession provided a basis for disposing of the writ petition.

Facts

The petitioner, Dwaraka Jewellers, challenged a show cause notice dated June 29, 2026, and the subsequent order dated August 3, 2026, passed by the Superintendent, CGST & Central Excise, Bhubaneswar II Range, which cancelled the petitioner's GST registration. The petitioner expressed willingness to pay all outstanding tax, interest, late fee, penalty, and any other sums due along with their return. The petitioner relied on a coordinate bench's order in M/s. Mohanty Enterprises v. The Commissioner, CT & GST, Odisha, Cuttack, which condoned delay in invoking a rule and directed consideration of revocation applications upon deposit of dues. The revenue conceded that if the petitioner complied with the undertaking, the authority would act accordingly.

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. (Question of law and fact, turning on principles of natural justice and statutory interpretation of relevant rules). Petitioner's contention: The petitioner argued that their situation is covered by the order in M/s. Mohanty Enterprises, where a coordinate bench condoned delay and directed consideration of revocation upon deposit of dues. They are ready and willing to pay all taxes, interest, late fees, penalties, and other sums. Revenue's contention: The Junior Standing Counsel for the department, after reviewing the cited order, conceded that if the petitioner fulfills their undertaking to deposit the amounts, the concerned authority should proceed with the revocation application.