Madras HC orders restoration subject to 9 strict conditions

In a recent ruling, the Madras High Court ordered the reinstatement of GST (Goods and Services Tax) registration, which was canceled for non-filing of GST returns due to illness, subject to 9 strict conditions.

The High Court applied the decision in the case Suguna Cutpiece c. The Deputy Appellate Commissioner (ST) (TPS) et al.

The petitioner, ARJ Engineering Works, represented by its proprietor J.Anitha, challenged the order of cancellation of GST registration and sought to revoke the same. It was argued that she was unable to file her return on time due to ill health.

The petitioner’s counsel submitted that the respective petitioner had endeavored to file GST returns and appealed against the cancellation of registration in 2024, but the appeals were not entertained on the ground of limitation . Relying on an earlier order of this Court dated 08.02.2024 in W.P.No.33227 of Batch 2023, learned counsel contended that a similar order be passed in this case.

Counsel for the respondents submitted that the order passed in Suguna Cutpiece c. The Deputy Appellate Commissioner (ST) (TPS) and others, was a conditional order and that the petitioner concerned should be directed to comply with all the conditions stipulated therein.

Considering the arguments, Justice Senthilkumar Ramamoorthy observed that there is no need to decide these issues on merits. Instead, following the decision in Suguna Cutpiece, these writ petitions are disposed of by issuing the following 9 directions:

“i. The applicant concerned is requested to file returns for the period preceding the cancellation of registration, together with the tax charges together with interest thereon and the fees fixed for late filing of returns within forty -five (45) days from the date of receipt of a copy of this order.

ii. It is clearly stated that this payment of taxes, interest, fines/fees, etc. cannot be made or adjusted from any input tax credit which may remain unutilized or unclaimed in the hands of the applicants.

iii. If an input tax credit remains unused, it will not be used until it has been reviewed and approved by an appropriate or competent officer of the Department.

iv. Only such approved input tax credit may subsequently be used to discharge future tax liability under the Act and Rules.

v. The applicant concerned will also have to pay GST and file returns for the period after cancellation of registration declaring the exact value of the supplies.

vi. If an input tax credit has been obtained, it may only be used after review and approval by the respondents or any other competent authority.

vii. After payment of the tax, fine and uploading of declarations, registration is immediately reinstated.

viii. The respondents shall take appropriate action by requesting GST Network, New Delhi to make appropriate changes in the architecture of the GST web portal to enable the concerned applicant to file the returns and pay the tax/penalty/fine.

ix. The above exercise shall be carried out by the respondents within thirty (30) days from the date of receipt of a copy of this order.

Thus, subject to the conditions mentioned above being fulfilled by the petitioner, the Madras High Court directed the respondents to restore the GST registration. The writ petition was disposed of accordingly.

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