GST Registration Cancelled due to Non-Filing of GSTR: Madras HC put Forward Conditions to Restore Registration [Read Order]

The Madras High Court issued certain conditions for restoring the cancelled GST ( Goods and Services Tax ) registration. The court has issued conditions including to file the appropriate GST returns.

The petitioner, M/s Vinayaga Enterprises Vide writ petition challenged an order of cancellation of registration and sought revocation thereof. The petitioner claimed that he could not file the returns in time due to ill-health.

The counsel for the petitioner submitted that the respective petitioner endeavoured to file GST returns and presented appeals against the cancellation of registration in 2023, but the appeals were not received on the ground of limitation. Relying on the order of this Court in Marimuthu Venkateshwaran v. The Commissioner 2022, the counsel submitted that a similar order be passed in this case. 

Mr.Rajnish Pathiyil, senior standing counsel, accepted notice on behalf of the respondents. He submitted the order issued in Suguna Cutpiece v. The Appellate Deputy Commissioner, was a conditional order and that the petitioner should be directed to comply with all conditions stipulated therein.

The bench of Justice Senthilkumar Ramamoorthy stated that it is not necessary to adjudicate these matters on merits. Instead, by following the decision in Suguna Cutpiece, these writ petitions were disposed of by issuing the following directions by the court:

1. The respective petitioner herein is directed to file returns for the period prior to the cancellation of registration, together with tax dues along with interest thereon and the fee fixed for belated filing of returns within a period of forty five (45) days from the date of receipt of a copy of this order.
2. It is made clear that such payment of tax, interest, fine / fee and etc. shall not be allowed to be made or adjusted from and out of any Input Tax Credit which may be lying unutilized or unclaimed in the hands of the petitioners.
3. If any Input Tax Credit has remained unutilized, it shall not be utilised until it is scrutinized and approved by an appropriate or competent officer of the Department.
4. Only such approved Input Tax Credit shall be allowed to be utilized thereafter for discharging future tax liability under the Act and Rules.
5. The respective petitioner shall also pay GST and file the returns for the period subsequent to the cancellation of the registration by declaring the correct value of supplies.
6. If any Input Tax Credit was earned, it shall be allowed to be utilised only after scrutinising and approving by the respondents or any other competent authority.
7. On payment of tax, penalty and uploading of returns, the registration shall stand revived forthwith.
8. The respondents shall take suitable steps by instructing GST Network, New Delhi to make suitable changes in the architecture of the GST Web portal to allow the respective petitioner to file the returns and to pay the tax / penalty / fine.
9. The above exercise shall be carried out by the respondents within a period of thirty (30) days from the date of receipt of a copy of this order.

The high court stated that the restoration of the GST registration is subject to and conditional upon fulfilling the above conditions. Accordingly, the writ petition was disposed of.

To Read the full text of the Order CLICK HERE

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