Venkateswara Medical Vs Commercial Tax Officer (Madras High Court)
The Madras High Court addressed a writ petition filed by Venkateswara Medical, challenging the cancellation of its Goods and Services Tax (GST) registration. The cancellation was based on the petitioner’s failure to file statutory returns for a continuous period of six months, invoking Section 29(2) of the Central Goods and Services Tax (CGST) Act. The petitioner’s counsel argued that returns had been filed and taxes paid, with a willingness to settle any outstanding dues, including late fees and interest. The court acknowledged that similar cases had been previously adjudicated, notably in Suguna Cut piece Center Vs. Appellate Deputy Commissioner (ST) (GST) and others. In those prior judgments, the court had directed the revocation of registration cancellations, subject to specific compliance conditions.
The court referenced the established precedent from Suguna Cut piece Center, outlining the conditions for registration revival. These conditions mandate that petitioners file all outstanding returns, pay any unpaid taxes, interest, and penalties within 45 days. Crucially, these payments cannot be made using existing Input Tax Credit (ITC). Any existing ITC is subject to scrutiny and approval by tax authorities before utilization. The court also requires that GST and returns for the period following cancellation be filed, with GST paid in cash. The court emphasized the need for careful review of ITC claims to prevent misuse, including potential bill trading. The order instructs the tax department to make necessary adjustments to the GST portal to enable petitioners to comply with the revival conditions. The court directed that the exercise of implementing the conditions be completed within 30 days. Based on these established precedents, the court extended the same benefits to Venkateswara Medical, disposing of the writ petition without costs and closing the related miscellaneous petitions.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
