Facts of the Case

The petitioner, Sree Seenivasa Engineering Works, a proprietorship represented by P. Pitchakannu Asari and registered under GSTIN 33ADNPP1464H1ZG, challenged the proceedings of the Assistant Commissioner (ST), Tirunelveli Junction Assessment Circle, bearing Reference Number ZA330125150138Y dated 24.01.2025, cancelling its GST registration. The petitioner sought a writ of certiorarified mandamus to quash the cancellation and to direct the respondent to revoke it.

Issues Involved

  1. Whether the cancellation of GST registration ought to be set aside so as to allow the petitioner to resume compliance and business activity.
  2. Whether the well-settled conditions laid down in Tvl.Suguna Cutpiece Center vs Appellate Deputy Commissioner (ST) (GST) apply to restoration of the petitioner's registration.

Petitioner's Arguments

  • Counsel for the petitioner submitted that the issue is squarely covered by the batch decision in Tvl.Suguna Cutpiece Center Vs. Appellate Deputy Commissioner (ST) (GST) and others (W.P.Nos.25048, 25877, 12738 of 2021 and other connected matters, decided on 31.01.2022).
  • The petitioner was willing to comply with the conditions imposed in that decision to secure restoration of registration.

Respondent's Arguments

  • The learned Additional Government Pleader for the Assistant Commissioner (ST) agreed that the matter was covered by the Suguna Cutpiece Center formula and did not oppose restoration subject to compliance with the conditions laid down therein.

Court Order / Findings

  • Justice G.R. Swaminathan reproduced the operative conditions from Suguna Cutpiece Center, which require the petitioner to file pending returns along with defaulted tax, interest, fine and late fee within forty-five days; restrict payment of such dues from unutilised Input Tax Credit; mandate scrutiny and approval of any ITC before its utilisation; and require GST for the period after cancellation to be paid in cash.
  • The impugned cancellation order was set aside and the respondent was directed to restore the GST registration, subject to the petitioner complying with these conditions.
  • The writ petition was disposed of with no costs and the connected miscellaneous petition was closed.

Important Clarification

  • Restoration of a cancelled GST registration under the Suguna Cutpiece Center formula is conditional — pending returns, tax, interest, fine and late fee must be paid, and any unutilised Input Tax Credit cannot be used towards such payment without prior departmental scrutiny and approval.
  • The department retains the power to impose further restrictions to prevent undue passing of Input Tax Credit or bill trading taking advantage of the restoration order.

Sections Involved

  • Central Goods and Services Tax Act, 2017 / Tamil Nadu Goods and Services Tax Act, 2017 — registration cancellation and revocation framework.
  • Article 226 of the Constitution of India — writ jurisdiction invoked for certiorarified mandamus.

Decision – In Favour of

In favour of the Assessee — registration restoration granted, subject to compliance with the conditions laid down in Suguna Cutpiece Center.

Case Details

Court: Madurai Bench of Madras High Court
Case No.: W.P(MD).No.27367 of 2025 and W.M.P(MD).No.21276 of 2025
Coram: Hon'ble Mr. Justice G.R. Swaminathan
Date of Order: 26.09.2025

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