Tvl. Premium Tyres Private Limited Vs Assistant Commissioner (Madras High Court)
The writ petition before the Madras High Court challenged an order dated 21.06.2025 canceling the petitioner’s GST registration. The petitioner submitted that due to financial constraints and business setbacks, GST compliance was not closely monitored, under a bona fide belief that the appointed accountant would file returns. However, GST returns were not filed for six months, leading to cancellation of registration. The petitioner expressed readiness to file all pending returns and discharge the entire tax liability along with applicable interest and penalty.
The respondent confirmed that the GST registration was cancelled by the impugned order and sought appropriate directions from the Court. After hearing both sides and examining the record, the Court found the explanation for non-compliance to be genuine. Accordingly, the Court revoked the cancellation order, subject to strict conditions. These included enabling portal access to file returns, payment of all dues within specified timelines, prohibition on using unutilized input tax credit for such payments, and mandatory scrutiny and approval of any ITC before future utilization. The Court clarified that non-compliance with these conditions would result in automatic cessation of the relief granted. The writ petition was disposed of without costs.
