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Facts of the Case

Tvl. G.R.L. Logistics, represented by its proprietrix L. Soundarya, challenged an order dated 21.04.2023 (Reference No. ZA330423090844I) passed by the Commercial Tax Officer, Kovilpatti, cancelling its GST registration (GSTIN 33HOVPS2082L1Z2). The petitioner claimed to have been unaware of the cancellation until informed by other taxpayers, after which an appeal was filed before the appellate authority. That appeal was rejected as time-barred. The petitioner then approached the Madurai Bench of the Madras High Court, seeking quashing of the cancellation and consequential revocation of the GSTIN.

Issues Involved

  1. Whether a GST registration cancelled for default, and where the statutory appeal was rejected as time-barred, can still be restored by the writ court applying the terms laid down in Suguna Cutpiece Centre.
  2. Whether the appellate authority correctly rejected the appeal on limitation grounds.

Petitioner's Arguments

  • The petitioner argued that in identical circumstances, the Madurai Bench had, in Tvl. Suguna Cutpiece vs. Appellate Deputy Commissioner (ST) (GST), laid down conditions permitting restoration of cancelled registrations upon compliance with return-filing and payment obligations.
  • It was submitted that this consistent line of decisions, unchallenged by the Revenue, should be extended to the petitioner as well.
  • Reliance was placed on several subsequent decisions of the same Court following the Suguna Cutpiece framework.

Respondent's Arguments

  • The learned Additional Government Pleader submitted that the appellate authority was bound by the limitation prescribed by statute and could not condone the delay, and hence rejection of the appeal as time-barred was legally sustainable.
  • No specific objection was raised to extension of the Suguna Cutpiece benefit if the Court was inclined to grant it.

Court Order / Findings

  • The Court noted that it had consistently followed the Suguna Cutpiece directions in similar matters, and that the Revenue had not challenged any of these orders, allowing them to attain finality.
  • The writ petition was allowed on the same terms as paragraph 229 of the Suguna Cutpiece Centre order, requiring the petitioner to file all pending returns with due tax, interest, fine and fee within 45 days, with restrictions on unscrutinised Input Tax Credit, following which the registration would stand revived.
  • No costs were imposed, consistent with the Court's settled practice in this category of cases.

Important Clarification

  • A GST registration cancelled for default in return filing can be restored notwithstanding rejection of the statutory appeal as time-barred, provided the assessee complies with the Suguna Cutpiece conditions — filing pending returns, paying tax/interest/fine and fee, and accepting restrictions on unscrutinised ITC.
  • This template has become a settled, near-automatic route for restoration of GST registration in the Madras High Court where the Revenue has not challenged the Suguna Cutpiece line of orders.

Sections Involved

  • Section 29, CGST Act, 2017 – governs cancellation of registration for default.
  • Section 107, CGST Act, 2017 – prescribes limitation for filing an appeal against cancellation.
  • Suguna Cutpiece Centre precedent (W.P.Nos.25048, 25877, 12738 of 2021 etc.) – lays down the conditions for restoration of cancelled GST registrations.

Decision – In Favour of

The decision is in favour of the assessee. The cancellation order was set aside and the registration ordered restored on compliance with the Suguna Cutpiece conditions, notwithstanding the appeal having been rejected as time-barred.

Case Details

Court: Madurai Bench of Madras High Court
Case No.: W.P.(MD) No. 22165/2023
CNR / Citation: Not available in judgment text
Coram: Hon'ble Mrs. Justice S. Srimathy
Date of Order: 12 September 2023

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