Facts of the Case

The Commissioner, Thirumangalam First Grade Municipality, filed a writ petition before the Madurai Bench of the Madras High Court challenging the order of the Assistant Commissioner (ST), Thirumangalam Circle, dated 04.11.2019 (Reference No. ZA3311190132607) cancelling the petitioner's GST registration, and the order of the Deputy Commissioner (ST), GST Appeal, dated 01.02.2022 (Appeal No. AP/GST/04/2022) dismissing the statutory appeal. The petitioner had filed its appeal only on 29.11.2021, beyond the statutory ninety-day period under Section 107 of the CGST Act and the further thirty-day condonable period, leading to dismissal of the appeal by the Appellate Commissioner on the ground of limitation.

Issues Involved

  1. Whether cancelled GST registration could be restored notwithstanding the statutory appeal having been filed beyond the condonable limitation period.
  2. Whether the ratio laid down in Tvl. Suguna Cutpiece Center vs Appellate Deputy Commissioner (ST) (GST) applied to grant relief.

Petitioner's Arguments

  • The petitioner sought a writ of certiorari to quash the cancellation order dated 04.11.2019 and the appellate dismissal order dated 01.02.2022 as illegal.
  • Reliance was placed on the batch ruling in Tvl. Suguna Cutpiece Center vs Appellate Deputy Commissioner (ST) (GST) and Others, seeking restoration of registration on the same terms.

Respondent's Arguments

  • The petition was disposed of at the admission stage itself in light of the binding Suguna Cutpiece Center precedent, with no separate contest on merits recorded from the respondents' side.

Court Order / Findings

  • The Court disposed of the writ petition at the time of admission, in light of the batch order in Tvl. Suguna Cutpiece Center vs Appellate Deputy Commissioner (ST) (GST) and Others (W.P.Nos.25048, 25877, 12738 of 2021 etc., dated 31.01.2022), noting that the interest of revenue was not protected by keeping such assessees outside the GST regime.
  • The Court was inclined to allow the writ petition by directing restoration of the GST registration, subject to the petitioner and respondents complying with the detailed conditions in the Suguna Cutpiece Center order.
  • The conditions require filing of pending returns and payment of tax, interest, fine and fee (not through unutilised ITC); scrutiny and approval of any accumulated ITC by a competent officer before utilisation; payment of future GST liabilities in cash; and restrictions to prevent misuse of the restored registration for bill trading.
  • No costs were awarded; connected miscellaneous petitions were closed.

Important Clarification

  • Even where a statutory appeal against cancellation of GST registration is filed beyond the condonable limitation period under Section 107, the Madurai Bench of the Madras High Court, following Suguna Cutpiece Center, permits restoration of registration under Article 226 — but only subject to strict revenue-protective conditions, including payment of arrears in cash and departmental scrutiny of Input Tax Credit before utilisation.

Sections Involved

  • Section 107 of the CGST Act, 2017 — appeal to the Appellate Authority within ninety days, condonable by a further thirty days.
  • Section 29/30 of the CGST Act, 2017 — cancellation and revocation of GST registration.

Decision – In Favour of

In favour of the Assessee — registration restoration directed, subject to payment of tax arrears and compliance with revenue-protective conditions laid down in Suguna Cutpiece Center.

Related Case Laws

  • Tvl. Suguna Cutpiece Center vs Appellate Deputy Commissioner (ST) (GST) and Others, W.P.Nos.25048, 25877, 12738 of 2021 etc. batch, Madras High Court (Madurai Bench), 31.01.2022.
  • The Commissioner, Palani Municipality vs Commissioner of GST & Central Excise, W.P.(MD) No. 4178 of 2022 (Madurai Bench) — a companion ruling applying the same Suguna Cutpiece Center principle.

Case Details

  • Court: Madurai Bench of the Madras High Court
  • Case No.: W.P.(MD) No. 4185 of 2022 with W.M.P.(MD) Nos. 3589 and 3590 of 2022
  • Coram: Hon'ble Mr. Justice C. Saravanan
  • Date of Order: 09.03.2022

Link to Download the Order

You can view/download the order here.

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