Facts of the Case

The petitioner, K. Jainulabudeen (GSTIN 33BFFPJ0192H2ZP), a registered dealer under the GST Act, had his registration cancelled by the Commercial Tax Officer, Uthamapalayam, Theni District, vide proceedings dated 01.04.2025. Aggrieved, the petitioner approached the Madras High Court (Madurai Bench) seeking a writ of certiorarified mandamus to quash the cancellation order and to direct revocation of the registration within a time frame fixed by the Court. Both counsel agreed that the controversy was squarely covered by the Madras High Court's well-known batch decision in Tvl. Suguna Cutpiece Center vs. Appellate Deputy Commissioner (ST) (GST), which laid down a standard set of conditions for restoration of cancelled GST registrations.

Issues Involved

  1. Whether the impugned order cancelling the petitioner's GST registration was liable to be set aside.
  2. Whether restoration of registration could be directed subject to the conditions laid down in the Suguna Cutpiece Center batch judgment.

Petitioner's Arguments

  • The cancellation order was illegal and arbitrary and deserved to be quashed.
  • The issue stood squarely covered by the Madras High Court's decision in Tvl. Suguna Cutpiece Center vs. Appellate Deputy Commissioner (ST) (GST) and connected batch matters.
  • The petitioner was willing to comply with the conditions of filing pending returns and paying defaulted tax, interest, fine, and fee, and to furnish the outstanding bank account details.

Respondent's Arguments

  • Learned Additional Government Pleader for the respondent agreed that the issue was covered by the Suguna Cutpiece Center batch ruling.
  • The principal grievance raised was that the petitioner had not furnished bank account details, which the petitioner undertook to remedy immediately.

Court Order / Findings

  • The Court reproduced the operative directions from Tvl. Suguna Cutpiece Center vs. Appellate Deputy Commissioner (ST) (GST), requiring petitioners to file pending returns with defaulted tax, interest, fine, and late fee within 45 days, without adjustment from unutilized Input Tax Credit until scrutinised and approved.
  • The impugned cancellation order was set aside and the respondent was directed to restore the GST registration, subject to the petitioner complying with the Suguna Cutpiece Center conditions.
  • The petitioner undertook to furnish the pending bank account details immediately.
  • The writ petition was disposed of with no costs.

Important Clarification

  • Registration cancelled for non-filing of returns can be restored on a standardised set of conditions: filing pending returns with tax, interest, fine, and fee; restricted use of unscrutinised ITC; and continued compliance for future periods.
  • Restoration is not automatic — it is conditional on payment in cash (not through unutilized ITC) and on the department's verification safeguards against bill trading.
  • The GST Network is directed, in the underlying batch ruling, to make portal changes enabling such petitioners to file returns and pay dues even after cancellation.

Sections Involved

  • Section 29, CGST Act, 2017 — cancellation of registration, including for failure to file returns.
  • Section 39, CGST Act, 2017 — furnishing of returns, non-compliance with which triggered the cancellation.

Decision – In Favour of

Assessee. The cancellation order was set aside and restoration directed, conditional on compliance with the Suguna Cutpiece Center terms.

Case Details

Court: Madurai Bench of Madras High Court
Case No.: W.P.(MD) No. 26095 of 2025
Coram: Hon'ble Mr. Justice G.R. Swaminathan
Date of Order: 22.09.2025

Link to Download the Order

Click here to view/download the full order

Disclaimer

This content is shared strictly for general information and knowledge purposes only. Readers should independently verify the information from reliable sources. It is not intended to provide legal, professional, or advisory guidance. The author and the organisation disclaim all liability arising from the use of this content. The material has been prepared with the assistance of AI tools.