Tvl. Dd 654 DGL Govt Medical College Staffs and Students Cooperative Store Ltd. Vs Superintendent (Madras High Court)
Summary: Madras High Court disposed of a writ petition challenging the order dated 12.09.2025 bearing Ref.No.ZA3309250655384, whereby the petitioner’s GST registration had been cancelled with effect from 01.09.2025. The petitioner, Tvl. Dd 654 DGL Govt Medical College Staffs and Students Cooperative Store Ltd., sought quashing of the cancellation order and restoration of its GST registration. At the admission stage, counsel for both the petitioner and the respondent submitted that the issue was squarely covered by the Madras High Court’s earlier decision in Tvl. Suguna Cutpiece Center Vs. Appellate Deputy Commissioner (ST) (GST) and others, W.P.Nos.25048, 25877, 12738 of 2021 and etc., batch, decided on 31.01.2022. In that decision, the Court had prescribed conditions for revival of cancelled GST registrations, including filing returns for periods prior to cancellation, payment of defaulted tax together with interest and applicable fine and fee within the prescribed period, and payment without adjustment from unutilized or unclaimed Input Tax Credit. Input Tax Credit remaining unutilized or subsequently earned was to be permitted for utilization only after scrutiny and approval by the competent authority. The directions further required filing returns and paying GST for periods subsequent to cancellation, with such GST being paid in cash, and permitted the Department to impose restrictions to prevent undue passing of Input Tax Credit or bill trading. Registration was to stand revived upon payment of tax and penalty and uploading of returns. Applying those conditions, the High Court set aside the impugned cancellation order and directed the respondent to restore the petitioner’s GST registration subject to compliance with the conditions imposed in Tvl. Suguna Cutpiece Center’s case. The writ petition was accordingly disposed of without costs and the connected miscellaneous petition was closed.
Cases Discussed
- Tvl. Suguna Cutpiece Center Vs. Appellate Deputy Commissioner (ST) (GST) and others — W.P.Nos.25048, 25877, 12738 of 2021 and etc., batch, decided on 31.01.2022. The Court applied the conditions prescribed in this decision for restoration of cancelled GST registration.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
This Writ Petition is disposed of at the time of admission with the consent of the learned counsel for the petitioner and learned Senior Standing Counsel for the respondent.
2. The petitioner has challenged the impugned order dated 12.09.2025 bearing reference in Ref.No.ZA3309250655384, cancelling GST registration of the petitioner with effect from 01.09.2025.
3. The learned counsel for the petitioner as well as the learned Senior Standing Counsel for the respondent submit that the issue is squarely covered by decision rendered by this Court in the case of Tvl.Suguna Cutpiece Center Vs. Appellate Deputy Commissioner (ST) (GST) and others, in W.P.Nos.25048, 25877, 12738 of 2021 and etc., batch (decided on 31.01.2022), wherein this Court had ordered as follows:
229. In the light of the above discussion, these Writ Petitions are allowed subject to the following conditions:-
i. The petitioners are directed to file their returns for the period prior to the cancellation of registration, if such returns have not been already filed, together with tax defaulted which has not been paid prior to cancellation along with interest for such belated payment of tax and fine and fee fixed for belated filing of returns for the defaulted period under the provisions of the Act, within a period of forty five (45) days from the date of receipt of a copy of this order, if it has not been already paid.
ii. It is made clear that such payment of Tax, Interest, fine / fee and etc. shall not be allowed to be made or adjusted from and out of any Input Tax Credit which may be lying unutilized or unclaimed in the hands of these petitioners.
iii. If any Input Tax Credit has remained utilized, it and etc. batch shall not be utilised until it is scrutinized and approved by an appropriate or a competent officer of the Department.
iv. Only such approved Input Tax Credit shall be allowed for being utilized thereafter for discharging future tax liability under the Act and Rule.
v. The petitioners shall also pay GST and file the returns for the period subsequent to the cancellation of the registration by declaring the correct value of supplies and payment of GST shall also be in cash.
vi. If any Input Tax Credit was earned, it shall be allowed to be utilised only after scrutinising and approving by the respondents or any other competent authority.
vii.The respondents may also impose such restrictions / limitation on petitioners as may be warranted to ensure that there is no undue passing of Input Tax Credit pending such exercise and to ensure that there is no violation or an attempt to do bill trading by taking advantage of this order.
viii.On payment of tax, penalty and uploading of returns, the registration shall stand revived forthwith.
ix. The respondents shall take suitable steps by instructing GST Network, New Delhi to make and etc. batch suitable changes in the architecture of the GST Web portal to allow these petitioners to file their returns and to pay the tax/penalty/fine.
x. The above exercise shall be carried out by the respondents within a period of thirty (30) days from the date of receipt of a copy of this order.
xi. No cost.
xii.Consequently, connected Miscellaneous Petitions are closed.”
4. Under these circumstances, the impugned order is set aside and the respondent is directed to restore the GST registration subject to the petitioner complying with the conditions imposed in Tvl.Suguna Cutpiece Center’s case (cited supra).
5. This Writ Petition is disposed of, with the above observations. No costs. Consequently, connected miscellaneous petition is closed.
