GST Registration Restored Subject to Filing Returns and Payment of Dues

Case Title: D. Ilangovan v. The Assistant Commissioner & Anr.
Court: High Court of Judicature at Madras
Petition No.: W.P. No. 13724 of 2025 & W.M.P. No. 15414 of 2025
Date of Judgment: 17.04.2025
Category of Dispute: GST Registration Cancellation & Restoration
Relevant Sections:

• Section 29, Section 30 – CGST Act, 2017 (Cancellation & Revocation of Registration)

• Rule 21 & Rule 23 – CGST Rules, 2017

Facts of the Case (Paras 2–3, 6)

• The petitioner’s GST registration (GSTIN 33BJNPD4134K2Z9) was cancelled by the Assistant Commissioner vide order dated 17.07.2024 for non-filing of returns.

• The petitioner submitted that he was unwell between March 2025 and May 2025, and therefore could not coordinate with his auditor for timely return filing (Para 3).

• He assured the Court of his readiness to file all pending returns and pay outstanding tax with applicable interest and penalties (Para 3).

Questions in Consideration

• Whether the cancellation of GST registration for non-filing of returns should be revoked in light of the petitioner’s genuine health reasons?

• Whether restoration should be made subject to compliance with statutory obligations regarding filing of returns, payment of dues, and ITC utilization?

Observations of the Court (Paras 6–6.1)

• The Court found the petitioner’s reason for default (ill health) to be genuine.

• It emphasized that while restoration is permissible, conditions must be imposed to safeguard revenue interests.

• The Court imposed the following key conditions:

  1. File all pending GST returns with payment of tax, interest, and late fees within 4 weeks of restoration (Para 6.1(i)).

  2. No adjustment of dues against unutilized ITC unless scrutinized and approved by the competent officer (Paras 6.1(ii)–(iv)).

  3. ITC, if available, can be used only after departmental approval (Para 6.1(v)).

  4. Non-compliance with these conditions would automatically nullify the relief granted (Para 6.1(vi)).

Judgment of the Court (Paras 6.1–7)

• The writ petition was allowed, and the impugned cancellation order was revoked, subject to strict compliance with conditions imposed.

• The GST registration of the petitioner was directed to be restored, ensuring all dues are cleared within 4 weeks.

• No costs were awarded, and the connected miscellaneous petition was closed.

Between Fine Lines

• The Court restored GST registration cancelled due to non-filing of returns.

• Health reasons were accepted as a genuine cause of delay.

• Restoration was conditional upon clearing all dues with interest and late fees.

• Unutilized ITC cannot be used until verified and approved by the department.

• Non-compliance will automatically void the benefit of restoration.

Summary of Referred Cases

(No external case laws were cited or referred in this judgment.)

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