Facts of the Case

The petitioner, Tvl. G.R.L. Logistics, had its GST registration (GSTIN UIN 33HOVPS2082L1Z2) cancelled by order dated 21.04.2023. The petitioner claimed it was unaware of the cancellation until informed by other taxpayers, and by the time it filed an appeal before the Appellate Authority, the appeal was rejected as time-barred. The petitioner then approached the High Court, relying on the well-established line of relief this Court has extended since its landmark ruling in Tvl.Suguna Cutpiece v. Appellate Deputy Commissioner (ST) (GST) (W.P.Nos.25048, 25877, 12738 of 2021, etc., batch, decided 31.01.2022) for taxpayers whose registrations were cancelled for non-filing of returns.

Issues Involved

  1. Whether a taxpayer whose GST registration was cancelled for non-filing of returns, and whose appeal was rejected as time-barred, is entitled to the same conditional revival relief consistently granted under the Suguna Cutpiece Centre framework.
  2. What conditions attach to such revival, particularly regarding utilisation of Input Tax Credit?

Petitioner's Arguments

  • The petitioner submitted that in identical circumstances, this Court's decision in Suguna Cutpiece Centre laid down a detailed framework permitting revival of cancelled registrations upon filing pending returns and paying tax, interest, fine and fee, and that this framework had been consistently followed in subsequent decisions including Maaruthi Foundations, J. Jayakrishnan, Jeyalakshmi Store, and Pearl and Company.

Respondent's Arguments

  • The Additional Government Pleader submitted that it is not open to the appellate authority to disregard the limitation prescribed by statute, and that the rejection of the appeal — admittedly filed beyond the condonable period — was legally sustainable on that ground.

Court Order / Findings

  • The Court held that it has consistently followed the directions in Suguna Cutpiece Centre in a series of decisions, that the Revenue has not challenged any of these orders (which have accordingly attained finality), and that this consistent practice, unchallenged by the Department, warranted extending the same benefit to the petitioner.
  • The petition was allowed on the same terms set out in paragraph 229 of the Suguna Cutpiece Centre order: the petitioner must file pending returns together with defaulted tax, interest, and applicable fine/fee within 45 days; such payment cannot be made through unutilised or unclaimed Input Tax Credit; any ITC remaining unutilised is to be scrutinised and approved by a competent officer before being allowed for future use; the petitioner must also pay GST in cash and file returns for the period after cancellation; and upon payment of tax, penalty, and uploading of returns, the registration shall stand revived forthwith.
  • The respondents were directed to instruct GSTN to make necessary web-portal changes to enable such filings, all within 30 days of receipt of the order, with no costs.

Important Clarification

Where a taxpayer's GST registration has been cancelled for non-filing of returns and an appeal is rejected as time-barred, courts (particularly the Madras High Court following its Suguna Cutpiece Centre framework) have permitted conditional revival of registration upon filing pending returns and paying all defaulted tax, interest, fine and fee in cash — expressly barring use of unscrutinised, unutilised Input Tax Credit to discharge these dues — since the Revenue's consistent non-challenge to this line of relief across many cases has allowed it to attain the status of settled practice.

Sections Involved

  • Section 29, CGST Act, 2017 — governs cancellation and revival of GST registration for non-filing of returns.
  • Section 107, CGST Act, 2017 — the appeal provision under which the petitioner's time-barred appeal was rejected.
  • Section 16, CGST Act, 2017 — relevant to the conditions restricting use of unscrutinised Input Tax Credit for discharging dues as part of the revival framework.

Decision – In Favour of

The decision is in favour of the Assessee. The writ petition was allowed on the Suguna Cutpiece Centre terms, permitting revival of the cancelled registration upon compliance.

Case Details

Court: Madras High Court, Madurai Bench
Case No.: W.P.(MD) No.22165 of 2023
Coram: Justice S. Srimathy
Date of Order: 12.09.2023

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