Madras High Court Revives GST Registration with Conditions [Read Order]

Madras High Court has revived a GST registration that was canceled for failing to file statutory returns for six consecutive months under the  Central Goods and Services Tax Act, 2017 (CGST Act). The Court allowed the restoration of the registration subject to conditions.

The petitioner, Sree Venkateswara Medical, filed a Writ Petition challenging the cancellation of their GST registration because they did not file statutory returns for six consecutive months, invoking Section 29(2) of the CGST Act.

GST READY RECKONER: Complete Topic wise Circulars, Instructions & Guidelines Click here

E. Ann Priscilla Swarnakumari, counsel for the petitioner, argued that the returns had been filed, taxes were paid, and the petitioner was willing to pay any further dues along with late fees and interest, as required under the GST Act.

Read More: Will Removing Long Term Capital Gain Tax Unlock Growth? Experts Highlight 5 Key Benefits

Both the petitioner’s counsel and the Additional Government Pleader for the respondents R.Suresh Kumar, agreed that this issue was already addressed by prior judgments, particularly the case of Tvl. Suguna Cutpiece Center Vs. Appellate Deputy Commissioner (ST) (GST). In that case, the court directed the revocation of registration subject to certain conditions.

The Court, led by Justice K. Kumaresh Babu, reiterated the conditions established in Suguna Cutpiece Center’s case, which include:

1. The petitioner must file any outstanding returns, pay the defaulted tax with interest, and pay any fines or late fees within 45 days.
2. Payments cannot be made using any unutilized Input Tax Credit (ITC).
3. Any unused ITC must be scrutinized and approved before being used.
4. The petitioner must pay GST and file returns for the period after the registration cancellation.
5. Once the tax, penalty, and returns are filed, the registration will be immediately revived.

Read More: Penalty for Late Filing of Tax Return: ITAT quashes Order as Time-Barred

Based on these precedents, the Court decided to extend the benefit of the Suguna Cutpiece Center judgment to the petitioner, allowing them to restore their registration subject to these conditions.

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates