M/S Narayan Sarkar, Malkangiri vs. Pr. Commissioner CGST And Central Excise Commissionerate, Bhubaneswar

Held

The Court held that in view of the conceded position by the Revenue and the Petitioner's undertaking to pay all dues, the Petitioner should make the payments within two weeks. Upon such payment, the Opposite Party (Revenue) is 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 found the Petitioner's claim for relief, including condonation of delay, to be covered by the precedent cited. The Writ Petition was disposed of based on these directions. The ratio decidendi is that where a taxpayer is willing to clear all dues and the Revenue concedes to consider revocation upon such payment, the High Court will direct the authorities to proceed accordingly, condoning any procedural delay.

Facts

The Petitioner, M/s. Narayan Sarkar, challenged a show cause notice dated 15.10.2025 and the subsequent order dated 15.11.2025 passed by the Pr. Commissioner CGST & Central Excise, Bhubaneswar, which cancelled the Petitioner's GST registration. The Petitioner expressed willingness to pay all outstanding taxes, interest, late fees, and penalties. The Petitioner 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.) concerning condonation of delay in applying for revocation of registration. The Opposite Party (Revenue) conceded that if the Petitioner complied with the undertaking, the concerned authority would act accordingly.

Key Issues

1. Whether the Petitioner's delay in applying for revocation of GST registration cancellation should be condoned, considering the undertaking to pay all dues, in light of the principles laid down in M/s. Mohanty Enterprises Vrs. The Commissioner, C.T & G.S.T, Odisha, Cuttack and Ors.? Petitioner's Argument: The Petitioner argued that their case is covered by the aforementioned order of the coordinate bench, which allowed for condonation of delay in similar circumstances, subject to payment of all dues. They expressed readiness to deposit the tax, interest, late fee, penalty, and any other required sum. Revenue's Argument: The Revenue, upon perusal of the cited order, conceded that if the Petitioner complies with the undertaking to deposit the amounts due, the concerned authority shall consider the application for revocation of registration.