Tvl. Ponnian Jaya Singh Vs Assistant Commissioner (Madras High Court)
The petitioner, a registered dealer and Class-I contractor under the Tamil Nadu Goods and Services Tax Act, 2017, challenged an order dated 29 August 2025 cancelling his GST registration. His business premises were inspected on 8 and 9 January 2025 under Section 67, after which the department alleged tax evasion and issued a show cause notice on 25 July 2025 proposing cancellation of registration and simultaneously suspending it. The petitioner neither submitted a reply nor attended the personal hearing, leading to the cancellation order now under challenge.
The petitioner reiterated the grounds set out in the writ affidavit. The respondent’s counsel submitted that the petitioner had suppressed turnover since 2018–19 and specifically for April to July 2025–26 to the extent of ₹2,13,39,325/-, resulting in alleged CGST and SGST evasion of ₹19,20,539.25 each. It was argued that due to deliberate statutory contravention, cancellation became necessary, although the petitioner could still seek revocation under Section 30 read with Rule 23.
The Court examined the record and noted differences between the figures mentioned in the show cause notice and those in the final order. The show cause notice alleged turnover suppression of ₹45,19,937.77 with tax evasion of ₹8,13,588.79, while the order concluded a much higher suppression of ₹2,13,39,325/- and corresponding tax liability. The Court held that the demand in the final order cannot exceed what is alleged in the show cause notice and that both must be in consonance. The cancellation was therefore unsustainable on this ground.
