Facts of the Case

The petitioner, Transcorp Logistic Pvt. Ltd. (GSTIN 07AAECT6488J1ZQ), impugned an order dated 10.06.2022 cancelling its GST registration, and a further order dated 04.01.2023 dismissing its appeal against the cancellation as barred by limitation. During the hearing, counsel for the Revenue drew attention to the Madras High Court's decision in Tvl. Suguna Cutpiece v. Appellate Deputy Commissioner (ST) (GST) (batch matters), particularly paragraph 229, which lays down conditions on which such petitioners are permitted to have their registrations restored notwithstanding delay.

Issues Involved

  1. Whether the petitioner's GST registration, cancelled and left unrestored after a time-barred appeal, could be restored subject to compliance with the conditions set out in the Madras High Court's Suguna Cutpiece decision.

Petitioner's Arguments

  • The petitioner sought an opportunity to file its pending returns and secure restoration of its GST registration, agreeing to comply with whatever conditions the Court found appropriate, including those in Tvl. Suguna Cutpiece.

Respondent's Arguments

  • Counsel for the Revenue had no objection to the petitioner's registration being restored, subject to the petitioner complying with the directions in paragraph 229 of Tvl. Suguna Cutpiece — filing pending returns with due tax, interest, fine and fee; using only approved/scrutinised input tax credit; paying GST in cash for the period after cancellation; and complying with GSTN portal-related directions.

Court Order / Findings

  • Given the agreement of both sides, the Court did not need to independently adjudicate the legality of the cancellation on merits.
  • Both the cancellation order dated 10.06.2022 and the appellate dismissal dated 04.01.2023 were set aside, and the respondents were directed to restore the petitioner's GST registration, subject to the petitioner complying with the conditions in paragraph 229 of Tvl. Suguna Cutpiece within two weeks.
  • The petition was disposed of in these terms.

Important Clarification

Where a GST registration has been cancelled and a subsequent appeal against cancellation is rejected as time-barred, courts across jurisdictions frequently restore the registration by consent, applying the compliance framework laid down in the Madras High Court's Tvl. Suguna Cutpiece batch decision — filing of pending returns with tax, interest, fine and fee; restricted use of unscrutinised ITC; and cash payment of GST for the post-cancellation period — rather than adjudicating the cancellation's validity afresh.

Sections Involved

  • Section 29, CGST Act, 2017 – cancellation of registration and its consequences.
  • Section 107, CGST Act, 2017 – appeal against orders, including the limitation period that barred the petitioner's appeal here.

Decision – In Favour of

In favour of the Assessee, by consent — both impugned orders were set aside and registration restoration directed, conditional on the petitioner complying with the Suguna Cutpiece safeguards.

Case Details

High Court of Delhi at New Delhi; W.P.(C) 2100/2023 with CM Appl. 7947/2023; Coram: Hon'ble Mr. Justice Vibhu Bakhru and Hon'ble Mr. Justice Amit Mahajan; Order dated 10.03.2023; CNR not indicated on the order copy.

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