Kshema Wind Farm Services Vs Assistant Commissioner of State Tax (Madras High Court)
Madras High Court set aside the cancellation of GST registration for Kshema Wind Farm Services, provided the petitioner meets specific conditions, including the payment of pending taxes, interest, and penalties. The petitioner argued that the cancellation order, issued on November 15, 2023, was arbitrary and violated principles of natural justice. The court acknowledged that similar cases, including Tvl. Suguna Cutpiece Center v. Appellate Deputy Commissioner (ST) (GST), had established a precedent for revoking GST cancellations under comparable circumstances.
Following established judicial directions, the court mandated the petitioner to file pending returns, settle outstanding tax liabilities without adjusting Input Tax Credit (ITC), and ensure compliance with GST regulations. Additionally, future ITC utilization would be subject to scrutiny and approval by tax authorities. Upon fulfilling these requirements, GST registration would be restored, and the authorities were instructed to facilitate necessary portal modifications within 30 days. The petition was disposed of accordingly, reinforcing procedural compliance for tax registration restoration.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
The present Writ Petition is filed challenging the impugned cancellation of GST Registration Orer in FORM GSTR REG-19 bearing reference number ZA331123066635Q, dated 15.11.2023 passed by the respondent and to quash the same as the same being arbitary and passed in violation of Principles of natural justice and subsequently direct the respondent to restore GST Registration of the Petitioner.
