Madras HC Revokes GST Registration Cancellation; Allows Filing of Pending Returns with Tax and Interest
Madras HC Revokes GST Registration Cancellation; Allows Filing of Pending Returns with Tax and Interest
The current writ petition is being filed by a firm named M/s. Supreme Residency Hotels and Resorts (petitioner) against the Commercial Tax Officer and Assistant Commissioner (respondent) in the Madras High Court. Through the petition, the company was demanding the court review the case deeply and quash the order dated 28.02.2024 (related to the cancellation of GST registration of the company) with retrospective effect from 30.06.2023, further direct the respondent to restore and activate their GST registration granted under the Central Goods and Services Tax Act, 2017, and the Tamil Nadu Goods and Services Tax Act, 2017, in GSTIN 33DWLPS5264N4ZN.
The company earlier failed to furnish returns for a continuous period of six months, which attracted the attention of the tax department. As a result, the Assistant Commissioner issued a Show Cause Notice (SCN) dated 19.10.2023 to the company. But the company neither replied to the notice nor appeared for any personal hearing, which led to the issuance of an order dated 28.02.2024 by the Assistant Commissioner, cancelling the GST registration of the company.
Hence, the company filed this present writ petition in the Madras High Court. The lawyer responded, saying the company is willing to file its GST returns and pay all the taxes it owes, along with any interest and penalties. Therefore, she asks the Court to quash the order made by the Assistant Commissioner that cancelled the company’s GST registration. Further, the lawyer confirmed that the company’s GST registration was cancelled by the Assistant Commissioner on 28.02.2024. He requested the court to make an appropriate decision.
When the court analysed both sides, it found the reason given by the petitioner was genuine: that the petitioner did not know about this GST registration cancellation in time, so they could not apply to revoke it. On the basis of the information, the court decided to quash the GST registration cancellation order dated 28.02.2024 and restore the petitioner’s GST registration. However, on condition, the respondent must inform the GST Network in New Delhi to make necessary changes in the GST portal so the petitioner can file returns and pay the required tax, penalties, and fines within 4 weeks.
The petitioner must file all pending GST returns and pay the taxes, interest, and late filing fees within 4 weeks from the date their registration is restored. The petitioner cannot use any Input Tax Credit (ITC); they have to pay the outstanding amounts. Any unutilised ITC must be checked and approved by a proper officer before it can be used. Only approved ITC can be used to pay future tax. ITC earnings can only be used after being reviewed and approved by the concerned authority. If the petitioner fails to meet any of the above conditions, the benefit given by this order will be cancelled automatically. With these directions, the Court closed the writ petition.