Tvl. KRM Construction Vs Assistant Commissioner (Madras High Court)
The Madras High Court disposed of a writ petition challenging an order dated 01.07.2024 canceling the petitioner’s GST registration. The petitioner explained that due to health issues, statutory compliances, including GST return filing, were entrusted to a part-time accountant who failed to file returns continuously for six months, leading to cancellation of registration. The petitioner expressed willingness to file all pending returns and discharge the entire tax liability along with applicable interest and penalties, if any, and sought revocation of the cancellation.
The respondent confirmed the cancellation 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. Consequently, the Court revoked the cancellation order, subject to specific conditions.
The respondent was directed to take steps to enable portal access through GST Network to allow filing of returns and payment of dues within four weeks. The petitioner was directed to file all pending returns and pay tax, interest, and late fees within four weeks from restoration of registration. The Court clarified that such payments could not be made by adjusting any unutilized or unclaimed Input Tax Credit (ITC). Any ITC remaining unutilized was barred from use until scrutiny and approval by the competent authority, and only approved ITC could be utilized for future tax liabilities. Non-compliance with these conditions would result in automatic cessation of the relief granted.
