GST Registration Cancelled Over GSTR Non-Filing Due to Illness: Madras HC orders Restoration Subject to 9 Strict Conditions

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

The High court applied the decision in the case Suguna Cutpiece v. The Appellate Deputy Commissioner (ST) (GST) and others.

The Petitioner, A.R.J. Engineering Works, Represented by its Proprietrix J.Anitha challenged the GST registration cancellation order and sought to revoke it. It was submitted that she could not file returns in time on account of ill-health.

The petitioner’s counsel submitted that the respective petitioner endeavoured to file GST returns and presented appeals against the cancellation of registration in 2024, but the appeals were not received on the ground of limitation. By placing reliance on an earlier order of this Court dated 08.02.2024 in W.P.No.33227 of 2023 batch, counsel submitted that a similar order be passed in this case.

The counsel for the respondents submitted that the order issued in Suguna Cutpiece v. The Appellate Deputy Commissioner (ST) (GST) and others, was a conditional order and that the respective petitioner should be directed to comply with all conditions stipulated therein.

Considering the submissions, the bench of Justice Senthilkumar Ramamoorthy observed that it is not necessary to adjudicate these matters on merits. Instead, by following the decision in Suguna Cutpiece, these writ petitions are disposed of by issuing the following 9 directions:

“i. 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.

ii. 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.

iii. 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.

iv. Only such approved Input Tax Credit shall be allowed to be utilized thereafter for discharging future tax liability under the Act and Rules.

v. 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.

vi. 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.

vii. On payment of tax, penalty and uploading of returns, the registration shall stand revived forthwith.

viii. 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.

ix. 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.”

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

To Read the full text of the Order CLICK HERE

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