Facts of the Case

M/s M.K. Tools, represented by its proprietor T. Mangayarkarasi and registered under GSTIN 33BMKPM9564N1Z8, challenged an order dated 10.06.2024 (Reference No. ZA330624032756J) passed by the Assistant Commissioner, K.K. Nagar Assessment Circle, Madurai, cancelling its GST registration. The petitioner sought a writ of certiorarified mandamus to quash the cancellation and to direct the respondent to revoke it. Before the Madurai Bench of the Madras High Court, both counsel agreed that the matter was squarely covered by the earlier batch decision in Tvl. Suguna Cutpiece Center vs. The Appellate Deputy Commissioner (ST)(GST), which laid down a detailed formula for restoring cancelled GST registrations. The matter was decided by a single Judge on 06.03.2026.

Issues Involved

  1. Whether the order cancelling the petitioner's GST registration should be set aside and revocation permitted on the terms laid down in Suguna Cutpiece Center.
  2. What conditions should attach to such revocation to protect the revenue's interest, particularly regarding utilisation of Input Tax Credit accrued during the period of cancellation.

Petitioner's Arguments

  • The cancellation order dated 10.06.2024 was illegal and arbitrary, and the petitioner was entitled to the same relief already granted to similarly placed taxpayers in the Suguna Cutpiece Center batch of cases.
  • The petitioner sought a direction to the respondent to revoke the cancellation of its GST registration within a time frame fixed by the Court.

Respondent's Arguments

  • The Additional Government Pleader agreed that the matter was covered by Suguna Cutpiece Center and did not contest the applicability of that batch decision's terms to the present case.

Court Order / Findings

  • Both counsel being ad idem that the case was covered by Tvl. Suguna Cutpiece Center vs. The Appellate Deputy Commissioner (ST)(GST), the Court set aside the impugned cancellation order dated 10.06.2024 and allowed the writ petition on the same conditions laid down in paragraph 229 of Suguna Cutpiece Center.
  • The petitioner was directed to file pending returns along with defaulted tax, interest, and fine/fee for belated filing within 45 days, with such payment barred from being made or adjusted out of any unutilised or unclaimed Input Tax Credit.
  • Any Input Tax Credit remaining unutilised was directed to be usable only after scrutiny and approval by a competent officer, and the petitioner was required to pay GST and file returns for the period after cancellation by declaring correct values of supply, in cash.
  • On payment of tax, penalty and uploading of returns, the registration was directed to stand revived forthwith, with the entire exercise to be completed within 30 days, and the department authorised to impose restrictions to prevent undue passing of ITC or bill trading.

Important Clarification

  • The Suguna Cutpiece Center formula remains the standard template applied by Tamil Nadu courts for restoring cancelled GST registrations — requiring filing of pending returns, payment of due tax, interest, fine and fee, and specific restrictions on utilising accrued but unscrutinised Input Tax Credit.
  • Payment of dues for revocation cannot be made or adjusted from unutilised ITC that accrued during the period of cancellation, which must instead be scrutinised and approved before use.
  • Registration stands revived automatically, without a further separate order, once the conditions of payment and return-filing are satisfied within the stipulated period.

Sections Involved

  • Section 29, CGST/TNGST Act, 2017 — governs cancellation of GST registration.
  • Section 30, CGST/TNGST Act, 2017 — governs revocation of cancellation of registration, subject to conditions such as those in the Suguna Cutpiece Center formula.

Decision – In Favour of

Decided in favour of the assessee. The cancellation order was set aside and revocation directed on the standard Suguna Cutpiece Center conditions, within 30 days of the order.

Case Details

Court: Madurai Bench of the Madras High Court
Case No.: W.P(MD)No.6150 of 2026
Coram: Hon'ble Mr. Justice D. Bharatha Chakravarthy
Date of Decision: 06.03.2026

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