Maaruthi Foundations Private Limited Vs Deputy Commissioner (ST) (FAC) (Madras High Court)
The matter before the Madras High Court involved a writ petition seeking to quash the cancellation of GST registration and the subsequent appellate order. The petitioner, a dealer under the GST Act, 2017, had its registration cancelled on 08.12.2018 on the ground that returns had not been filed continuously for six months or more. The appeal filed against the cancellation was rejected by the Appellate Authority on 02.03.2022, leading to the present writ petition.
The Court noted that the issue raised was already addressed in an earlier batch of cases, particularly in the decision involving “Suguna Cutpiece Centre,” where detailed directions were issued regarding restoration of GST registration subject to compliance conditions. The Court also referred to a subsequent similar order where the same principles were applied.
Relying on these precedents, the Court held that the present case fell within the same category and the directions laid down earlier were applicable. Accordingly, the writ petition was disposed of by extending the benefit of those directions to the petitioner.
The directions required the petitioner to file all pending returns for the period prior to cancellation along with payment of tax, interest, penalty, and fees within 45 days. It was clarified that such payments must be made in cash and not by utilizing unclaimed or unutilized input tax credit. The petitioner was also required to file returns and pay tax for the period subsequent to cancellation. Input tax credit, if any, could be utilized only after scrutiny and approval by the competent authority.
