M/S.Kaghaz Subh Vanejya vs The Superintendent
2024 Latest Caselaw 14794 Mad

Citation : 2024 Latest Caselaw 14794 Mad
Judgement Date : 1 August, 2024

Madras High Court

M/S.Kaghaz Subh Vanejya vs The Superintendent on 1 August, 2024

Author: Senthilkumar Ramamoorthy

Bench: Senthilkumar Ramamoorthy

                                                                                      W.P.No.18539 of 2024

                                     IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                       DATED: 01.08.2024

                                                             CORAM

                           THE HONOURABLE MR.JUSTICE SENTHILKUMAR RAMAMOORTHY

                                                   W.P.No.18539 of 2024 and
                                                   W.M.P.No.20321 of 2024

                     M/s.Kaghaz Subh Vanejya,
                     Represented by Sanjay Jindal Proprietor,
                     3rd floor, No.15, Shivams Apartment,
                     Banson Garden Street,
                     Purasawalkam, Chennai.                                         ... Petitioner

                                                               -vs-

                     The Superintendent,
                     Purasawalkam, Range II,
                     Chennai.                                                      ... Respondent


                     PRAYER: Writ Petition filed under Article 226 of the Constitution of India,

                     to issue a Writ of Certiorari calling for the records on the files of the

                     respondent in reference no. ZA3303240244218 dated 7.3.24 and quash the

                     same as being invalid and illegal.

                                  For Petitioner       :   Mr.Srikanth

                                  For Respondent   :       Mr. A.P.Srinivas, Senior Standing Counsel


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https://www.mhc.tn.gov.in/judis
                                                                                        W.P.No.18539 of 2024

                                                             ORDER

The petitioner challenges an order of cancellation of GST registration

dated 07.03.2024 and seeks revocation thereof.

2. The petitioner asserts that he had engaged the services of a

Chartered Accountant for purposes of complying with requirements under

GST laws. A show cause notice was issued on 05.02.2024 stating that the

petitioner had not filed GST monthly returns for a continuous period of six

months. Such show cause notice was not replied to. Thereafter, the

impugned order was issued on 07.03.2024 and the present writ petition was

filed in the above facts and circumstances.

3. Learned counsel for the petitioner submits that the petitioner would

file the necessary GST returns in the event of the GST registration being

restored. In support of restoration of registration, learned counsel relies upon

the judgment of this Court in Suguna Cutpiece v. The Appellate Deputy

Commissioner (ST)(GST) and others, W.P.Nos.25048 of 2021 batch

(Suguna Cutpiece).

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4. Mr. A.P.Srinivas, learned senior standing counsel, accepts notice

for the respondent and submits that directions along the lines of Suguna

Cutpiece may be issued.

5. Accordingly, this writ petition is disposed of with the following

directions:-

i. The petitioner is directed to file returns for the period prior to the

cancellation of registration, if not filed, together with tax dues along with

interest thereon and the fee fixed for belated filing of returns within a period

of forty five (45) days from the date of receipt of a copy of this order.

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 (ITC) which may be lying unutilized or unclaimed in the hands of the

petitioner.

iii. If any ITC has remained unutilized, it shall not be utilised until it is

scrutinized and approved by an appropriate or competent officer of the

Department.

iv. Only such approved ITC shall be allowed to be utilized thereafter

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for discharging future tax liability under the Act and Rules.

v. The petitioner 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.

vi. If any ITC was earned, it shall be allowed to be utilised only after

scrutinising and approving by the respondent or any other competent

authority.

vii. On payment of tax, penalty and uploading of returns, the

registration shall stand revived forthwith.

viii. The respondent shall take suitable steps by instructing GST

Network, New Delhi to make suitable changes in the architecture of the GST

Web portal to allow the petitioner to file the returns and to pay the tax /

penalty / fine.