Facts of the Case

The petitioner, Alexan Jose, filed a writ petition under Article 226 of the Constitution of India seeking issuance of a Writ of Certiorarified Mandamus to call for the records relating to the order cancelling his GST registration in FORM GST REG-19, bearing Reference No. ZA3303260352702 dated 06.03.2026, passed by the respondent Commercial Tax Officer.

The petitioner sought quashing of the cancellation order and a consequential direction to restore GST Registration No. 33AOWPA7830G1ZV with immediate effect.

When the matter came up for hearing, learned counsel appearing for both sides were ad idem that the controversy was covered by the judgment of the Madras High Court in Tvl. Suguna Cutpiece Center vs The Appellate Deputy Commissioner (ST) (GST), Salem and Erode, W.P. Nos. 25048 of 2021 etc. batch cases.

Issues Involved

The principal issues before the Court were:

  1. Whether the GST registration cancellation order dated 06.03.2026 was liable to be set aside.
  2. Whether the petitioner was entitled to restoration or revival of the cancelled GST registration.
  3. Whether the matter was governed by the principles and compliance conditions laid down in Tvl. Suguna Cutpiece Center vs The Appellate Deputy Commissioner (ST) (GST), Salem and Erode.
  4. Whether revival of GST registration could be permitted subject to filing pending returns, payment of tax, interest, fine and fee, restrictions on utilisation of Input Tax Credit, and other safeguards prescribed in the earlier binding precedent.

Petitioner’s Arguments

The petitioner challenged the cancellation of GST registration effected through FORM GST REG-19 dated 06.03.2026 and sought immediate restoration of the registration.

The petitioner relied upon the legal position settled in Tvl. Suguna Cutpiece Center vs The Appellate Deputy Commissioner (ST) (GST), Salem and Erode, contending that the matter was covered by the said judgment and that similar relief should be extended subject to the conditions prescribed therein.

The petitioner’s position was that the impugned cancellation order should be quashed and the GST registration restored in accordance with the framework already laid down by the Court in the batch judgment.

Respondent’s Arguments

The respondent was represented by the learned Government Advocate.

At the hearing, both learned counsel agreed that the matter was covered by the judgment in Tvl. Suguna Cutpiece Center vs The Appellate Deputy Commissioner (ST) (GST), Salem and Erode. Thus, the respondent did not dispute the applicability of the conditions laid down in paragraph 229 of that judgment to the present matter.

Court Order / Findings

The Madras High Court noted the consensus between the parties that the dispute was covered by Tvl. Suguna Cutpiece Center. Accordingly, the Court applied the operative conditions contained in paragraph 229 of that judgment.

The Court set aside the impugned GST registration cancellation order dated 06.03.2026 and allowed the writ petition on the same terms and conditions extracted from the earlier judgment. No costs were awarded, and the connected miscellaneous petitions were closed.

The principal compliance conditions applied by the Court were:

  1. The petitioner must file returns for the period prior to cancellation, if not already filed, together with unpaid tax, interest for belated payment, and applicable fine and fee for delayed filing, within 45 days from receipt of a copy of the order, if not already paid.
  2. Payment of tax, interest, fine, fee and other amounts cannot be made or adjusted from unutilised or unclaimed Input Tax Credit lying with the petitioner.
  3. Any Input Tax Credit remaining available cannot be utilised until it is scrutinised and approved by the appropriate or competent departmental officer.
  4. Only approved Input Tax Credit can thereafter be utilised for discharging future tax liability under the Act and Rules.
  5. The petitioner must pay GST and file returns for the period subsequent to cancellation by declaring the correct value of supplies, and such GST payment must be made in cash.
  6. Any Input Tax Credit earned can be utilised only after scrutiny and approval by the respondent or other competent authority.
  7. The authorities may impose appropriate restrictions or limitations to prevent undue passing of Input Tax Credit and to ensure that the relief is not misused for bill trading.
  8. Upon payment of tax and penalty and uploading of returns, the registration shall stand revived forthwith.
  9. The authorities must take suitable steps, including instructing the GST Network to make necessary portal architecture changes enabling filing of returns and payment of tax, penalty and fine.
  10. The required exercise must be carried out by the respondents within 30 days from receipt of a copy of the order.

Important Clarification

This judgment does not grant unconditional restoration of GST registration. The relief is expressly governed by the conditions laid down in Tvl. Suguna Cutpiece Center.

A particularly important clarification is that the taxpayer cannot use unutilised or unclaimed Input Tax Credit to discharge the tax, interest, fine or fee obligations required for obtaining the benefit of revival under the order. Further, Input Tax Credit can be utilised only after scrutiny and approval by the competent authority.

The Court also preserved the power of the Department to impose restrictions or limitations necessary to prevent undue passing of Input Tax Credit and misuse through bill trading.

The judgment therefore reinforces that GST registration revival may be granted in covered cancellation cases, but such revival remains tied to strict tax compliance, filing of pending returns, cash payment requirements, scrutiny of Input Tax Credit and departmental safeguards.

Sections / Legal Provisions Involved

Article 226 of the Constitution of India — Writ jurisdiction of the High Court and prayer for Certiorarified Mandamus.

CGST Act, 2017 / applicable State GST enactment — Statutory framework governing GST registration, cancellation, tax payment, return filing, interest, penalty, fine, fee and Input Tax Credit.

GST Registration Provisions — Cancellation and restoration/revival of GST registration.

FORM GST REG-19 — Order for cancellation of GST registration.

Input Tax Credit Provisions under the GST law — Scrutiny, approval and restrictions upon utilisation of ITC.

GST Return Filing and Tax Payment Provisions — Filing of pre-cancellation and post-cancellation returns and payment of corresponding liabilities.

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