Facts of the Case

Kochappavoou Ajikumar's GST registration bearing GSTIN 33AKMPA4674Q2ZN was cancelled by an order dated 11.04.2025, Reference No. ZA330425077053S, passed by the Superintendent, DS Goods and Service Tax Network, Nagercoil. The petitioner approached the Madurai Bench of the Madras High Court by way of certiorarified mandamus, seeking to quash the cancellation and have the registration restored.

Issues Involved

  1. Whether cancellation of GST registration could be revoked by applying the terms already settled by the Court in Tvl.Suguna Cutpiece Center vs Appellate Deputy Commissioner (ST) (GST), Salem.
  2. What conditions should attach to restoration, particularly regarding utilisation of any input tax credit accrued during the period of cancellation.

Petitioner's Arguments

  • Both counsel agreed that the issue was covered by the Suguna Cutpiece Center formula and by a subsequent order dated 04.04.2025 in W.P.No.12218 of 2025 which had applied the same terms.

Respondent's Arguments

  • Counsel for the respondent did not oppose disposal on the same terms as the settled precedent, having accepted that the issue stood covered.

Court Order / Findings

  • Following the Suguna Cutpiece Center formula, the Court revoked the cancellation of registration, subject to the petitioner filing all pending returns for the subject period together with tax dues, interest and the fee for belated filing, within four weeks of restoration.
  • Payment of such tax, interest, fine or fee is not to be adjusted from any unutilised or unclaimed Input Tax Credit; any such ITC shall remain frozen until scrutinised and approved by a competent officer of the Department.
  • Only ITC so approved may thereafter be utilised for discharging future tax liability; non-compliance with any condition automatically extinguishes the benefit granted.
  • The impugned order was set aside and the writ petition disposed of on these terms.

Important Clarification

  • The 'Suguna Cutpiece Center formula' remains the standard mechanism for restoring GST registrations cancelled for return-filing defaults in Tamil Nadu: restoration is granted on filing pending returns and paying dues, but any ITC accumulated during the cancellation period is quarantined pending departmental verification before it can be used against future liability.

Sections Involved

  • Section 29, Central Goods and Services Tax Act, 2017 – cancellation of registration.
  • Section 30, Central Goods and Services Tax Act, 2017 – revocation of cancellation.
  • Section 16, Central Goods and Services Tax Act, 2017 – conditions for availment and utilisation of input tax credit, relevant to the restriction on ITC use pending scrutiny.

Decision – In Favour of

Disposed of on settled terms; in favour of the Assessee, with registration restored subject to compliance and ITC utilisation conditioned on departmental approval.

Case Details

  • Court: Madurai Bench of the Madras High Court
  • Case No.: W.P(MD)No.26772 of 2025 and W.M.P(MD)No.20770 of 2025
  • Coram: Justice G.R. Swaminathan
  • Date of Order: 25.09.2025

Link to Download the Order

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