2025 (3) TMI 243 - HC - GST

Challenge to impugned cancellation of GST Registration Order - HELD THAT - The issue stands covered by a series of judgments commencing with the decision in Tvl. Suguna Cutpiece Center Vs. Appellate Deputy Commissioner (ST) (GST) and others 2022 (2) TMI 933 - MADRAS HIGH COURT wherein under identical circumstances this Court has directed the revocation of registration subject to conditions. The benefit extended by this Court vide its earlier order in Suguna Cutpiece Centre s case may be extended to the petitioner. Petition disposed off.

Summary

The High Court of Madras considered a Writ Petition challenging the cancellation of GST Registration Order in FORM GSTR REG-19 by the respondent on the grounds of arbitrariness and violation of natural justice principles. The main issues presented and considered in the judgment are as follows:1. Whether the impugned cancellation of GST Registration Order was arbitrary and in violation of natural justice principles.2. Whether the Court should direct the respondent to restore the GST Registration of the Petitioner.The Court heard arguments from both parties, where the petitioner's counsel submitted that all necessary returns had been filed, appropriate taxes paid, and readiness to pay any outstanding taxes, late fees, and interest as required under the GST Act. Both parties acknowledged that the issue was covered by previous judgments, specifically referring to the decision in Tvl. Suguna Cutpiece Center Vs. Appellate Deputy Commissioner (ST) (GST) and others, where the Court had directed the revocation of registration subject to certain conditions.The Court noted that it had consistently followed the directions issued in the Tvl. Suguna Cutpiece Center case and quoted relevant portions of the order, which outlined conditions for revocation of registration. These conditions included filing returns for the period prior to cancellation, payment of outstanding taxes with interest, restrictions on utilizing Input Tax Credit, payment of GST in cash for subsequent periods, and approval requirements for utilizing Input Tax Credit.Based on the precedent set in the Tvl. Suguna Cutpiece Center case, the Court extended the same benefits to the petitioner in the present case. Consequently, the Court disposed of the Writ Petition by directing the respondent to restore the petitioner's GST Registration under the terms outlined in the earlier judgment. No costs were awarded in this matter.In conclusion, the Court upheld the petitioner's challenge against the cancellation of the GST Registration Order, citing arbitrariness and violation of natural justice principles. The Court directed the respondent to restore the registration based on the conditions established in previous judgments, particularly the Tvl. Suguna Cutpiece Center case.