Facts of the Case

The petitioner's GST registration (GSTIN 33DCFPS7470Q1ZR) was cancelled by an order in Form GST REG-19 dated 09.02.2024, pursuant to a show-cause notice dated 03.01.2024, on the ground of continuous failure to file returns for six months. The petitioner challenged the cancellation, seeking its revocation.

Issues Involved

  1. Whether cancellation of GST registration for continuous non-filing of returns should be set aside on the terms laid down in Suguna Cutpiece Centre.

Petitioner's Arguments

  • Sought quashing of the cancellation order and a direction to revoke the cancellation, relying on the settled line of authority balancing assessee and revenue interests in such matters.

Respondent's Arguments

  • The Government Advocate took notice for the respondent; no separate contest is recorded distinguishing the case from the applicable precedent.

Court Order / Findings

  • The Court held the issue was partly covered in the petitioner's favour by balancing the interest of the Revenue in terms of Tvl.Suguna Cutpiece Centre v. The Appellate Deputy Commissioner (ST) (GST), (2022) 99 GSTR 386 (Mad), as followed subsequently in Tvl.Blue Diamond Engineers (W.P.(MD) No.31271 of 2023, decided 29.04.2024).
  • The petitioner was directed to comply with the conditions stipulated in Suguna Cutpiece Centre (filing pending returns with tax, interest, fine and fee; restrictions on unscrutinised ITC utilisation; cash payment of post-cancellation GST, etc.), subject to which the impugned cancellation order would stand quashed.
  • The writ petition was allowed at the stage of admission itself, with no costs.

Important Clarification

  • The Suguna Cutpiece Centre conditions continue to be applied as a standardised, self-executing template for restoring GST registrations cancelled for non-filing of returns, conditioning restoration on payment of dues and safeguards against misuse of unscrutinised ITC.

Sections Involved

  • Section 29, GST Act, 2017 — cancellation of registration for continuous default.
  • Section 30, GST Act, 2017 — revocation of cancellation of registration.

Decision – In Favour of

The order is in favour of the Assessee. The cancellation order was quashed subject to compliance with the Suguna Cutpiece Centre conditions.

Case Details

Court: Madurai Bench of Madras High Court
Case No.: W.P.(MD).No. 19466 of 2025
Coram: Hon'ble Mr. Justice C. Saravanan
Date of Order: 18th July, 2025

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