Facts of the Case

Devan, a taxpayer registered under GST Registration No.33FNIPD6023E1ZG dated 19.01.2022, challenged an order in Reference No. ZA330623072673J dated 15.06.2023 passed by the Assistant Commissioner of GST, Srirangam, Trichy, cancelling the registration. The petitioner sought a writ of certiorarified mandamus before the Madurai Bench of the Madras High Court to quash the cancellation and to have the registration restored. The petition was disposed of at the admission stage itself on 04.06.2025, the Court noting that it regularly follows its own earlier batch decision in Tvl. Suguna Cutpiece Center vs. Appellate Deputy Commissioner (ST)(GST), which laid down a standard set of conditions for restoring cancelled GST registrations.

Issues Involved

  1. Whether the order cancelling the petitioner's GST registration should be set aside and the registration restored.
  2. What conditions should govern such restoration, particularly regarding filing of pending returns, clearing of dues, and use of accrued Input Tax Credit.

Petitioner's Arguments

  • The impugned order cancelling the GST registration was liable to be set aside, and the petitioner was entitled to restoration on the same terms already granted to similarly placed taxpayers in the Suguna Cutpiece Center batch of cases.

Respondent's Arguments

  • The Additional Government Pleader appearing for the respondent did not oppose disposal of the petition in terms of the Suguna Cutpiece Center formula, the matter being disposed of at the admission stage itself after hearing both sides.

Court Order / Findings

  • Regularly following its earlier batch decision in Tvl. Suguna Cutpiece Center vs. Appellate Deputy Commissioner (ST)(GST) (decided 31.01.2022), the Court set aside the impugned cancellation order and directed the respondent to restore the petitioner's GST registration, subject to compliance with the conditions laid down in paragraph 229 of that decision.
  • These conditions require the petitioner to file all pending returns for the period prior to cancellation, along with defaulted tax, interest, and fine/fee for belated filing, within 45 days, without adjusting such payment against any unutilised or unclaimed Input Tax Credit.
  • Any Input Tax Credit remaining unutilised is to be used only after scrutiny and approval by a competent officer, and the petitioner must also file returns and pay GST in cash for the period after cancellation, declaring the correct value of supplies.
  • On payment of tax, penalty and uploading of returns, the registration is directed to stand revived forthwith, with the entire exercise to be completed by the respondent within 30 days of receipt of the order, and the writ petition was disposed of with no order as to costs.

Important Clarification

  • The Suguna Cutpiece Center conditions remain the settled framework applied by the Madras High Court (including its Madurai Bench) for restoring GST registrations cancelled for non-compliance, balancing the taxpayer's right to continue business against the revenue's interest in recovering dues.
  • Payment of dues for restoration cannot be adjusted from unutilised ITC accrued during the cancellation period; such credit must be separately scrutinised and approved before use.
  • Such petitions are often disposed of swiftly, even at the admission stage, once both parties agree the matter is squarely covered by the Suguna Cutpiece Center precedent.

Sections Involved

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

Decision – In Favour of

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

Case Details

Court: Madurai Bench of the Madras High Court
Case No.: W.P.(MD) No.15174 of 2025 (with W.M.P.(MD) Nos.11460 and 11462 of 2025)
Coram: Hon'ble Mr. Justice C. Saravanan
Date of Decision: 04.06.2025

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