M/S. Sai Medicines, Angul Vs the Principal Commissioner… — GST and Indirect Tax | Orissa HC (2025)

M/S. Sai Medicines, Angul Vs the Principal Commissioner… — GST and Indirect Tax | Orissa HC (2025)

What the court decided

AI extract

Outcome

Writ petition disposed of with the direction that the delay in invoking the proviso to Rule 23 of the OGST Rules stands condoned and, subject to deposit of all taxes, interest, late fee, penalty etc., due and compliance with other formalities, the petitioner's application for revocation will be considered in accordance with law; relief granted in the interest of revenue.

Issue for consideration

Whether the petitioner, whose registration under the Central Goods and Services Tax Act, 2017 was cancelled after a show cause notice, is entitled to relief including condonation of delay in invoking the proviso to Rule 23 of the OGST Rules, subject to payment of dues, so that its application for revocation may be considered.

Court's answer

Following the coordinate Bench order in M/s. Mohanty Enterprises (W.P.(C) no.30374 of 2022), the Court made the like direction: the delay in invoking the proviso to Rule 23 of the OGST Rules is condoned and, subject to the petitioner depositing all 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.

Ratio / Principle

Relief is granted to the petitioner in the interest of revenue.

Detailed headnote1 paragraphs

Orissa High Court (Arindam Sinha, Acting Chief Justice, and M.S. Sahoo, Judge), by order dated 10.03.2025, disposed of W.P.(C) No.6564 of 2025 filed by M/s. Sai Medicines, Angul challenging a show cause notice dated 07.08.2023 and the order dated 22.02.2024 cancelling its registration under the Central Goods and Services Tax Act, 2017. Relying on the coordinate Bench order dated 16.11.2022 in W.P.(C) no.30374 of 2022 (M/s. Mohanty Enterprises v. The Commissioner, CT & GST, Odisha, Cuttack and others), the Court condoned the delay in invoking the proviso to Rule 23 of the Odisha Goods and Services Tax Rules (OGST Rules) and directed that, subject to the petitioner depositing all taxes, interest, late fee, penalty etc., due and complying with other formalities, its application for revocation will be considered in accordance with law; relief was granted in the interest of revenue.

IN THE HIGH COURT OF ORISSA AT CUTTACK

W.P.(C) No.6564 of 2025

M/s. Sai Medicines, Angul

Petitioner

Represented By Adv. – Mr. A. Mohanty, Advocate

-versus-

…. The Principal Commissioner of Opposite Parties Central Goods and Service Tax, Bhubaneswar and others

Represented By Adv. –

Mr. A. Kedia, Jr. Standing Counsel (for O.P. nos.1 to 5)

CORAM:

THE HON'BLE MR. JUSTICE ARINDAM SINHA,

THE ACTING CHIEF JUSTICE

AND

THE HON'BLE MR. JUSTICE M.S. SAHOO

ORDER

10.03.2025

Order No.

01.

Mr. Mohanty, learned advocate appears on behalf of petitioner

and submits, under challenge is show cause notice dated 7^th August, 2023 followed by order dated 22^nd February, 2024 cancelling his client’s registration under Central Goods and Services Tax Act, 2017. He submits, his client is ready and willing to pay the tax, interest, late

fee, penalty and any other sum required to be paid for the return form of his client to be accepted by the department. He relies on order

dated 16^th November, 2022 of coordinate Bench in W.P.(C) no.30374

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// 2 //

of 2022 (M/s. Mohanty Enterprises v. The Commissioner, CT &

GST, Odisha, Cuttack and others) . He submits, his client’s claim to relief including prayer for condonation of delay is covered by said order.

Mr. Kedia, learned advocate, Junior Standing Counsel appears on behalf of the department.

We reproduce below paragraph 2 from said order in M/s.

Mohanty Enterprises (supra).

“2. In that view of the matter, the delay in Petitioner’s invoking the proviso to Rule 23 of the Odisha Goods and Services Tax Rules (OGST Rules) is condoned and it is 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.”

Likewise direction is made in this writ petition. Petitioner gets the

relief in the interest of revenue.

The writ petition is disposed of.

(Arindam Sinha) Acting Chief Justice

Signature Not Verified

Digitally Signed Signed by: PRASANT KUMAR SAHOO Designation: PERSONAL ASSISTANT Reason: AuthenticationLocation: Orissa High Court (M.S. Sahoo) Date: 10-Mar-2025 17:56:18 Judge

Prasant

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