Azhusundaram Kundumalai vs The Assistant Commissioner (St)
2024 Latest Caselaw 20097 Mad

Citation : 2024 Latest Caselaw 20097 Mad
Judgement Date : 24 October, 2024

Madras High Court

Azhusundaram Kundumalai vs The Assistant Commissioner (St) on 24 October, 2024

Author: Mohammed Shaffiq

Bench: Mohammed Shaffiq

                                                                       W.P.(MD)No.25347 of 2024

                          BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT

                                             DATED : 24.10.2024

                                                    CORAM

                          THE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQ

                                         W.P.(MD)No.25347 of 2024


                Azhusundaram Kundumalai,
                Proprietor of M/s.A.Kundumalai Contractor,
                GSTN 33AAXPK 1337R2ZZ                                          ... Petitioner
                                                   Vs.

                The Assistant Commissioner (ST),
                Sivagangai Assessment Circle,
                Commercial Tax Buildings,
                Sivagangai.                                                    ... Respondent


                PRAYER: Writ Petition filed under Article 226 of the Constitution of India for
                issuance of Writ of Certiorarified Mandamus, to call for the records on the file
                of the respondent in Reference No. ZA3309220165200 dated 05.09.2022 and to
                quash the same as illegal, arbitrary and direct the respondents to revoke the
                cancellation of petitioners GSTN Registration No. 33AAXPK1337R2ZZ within
                such time as may be directed by this Court.

                                   For Petitioner     : Mr.S.Karunakar

                                   For Respondent     : Mr.R.Suresh Kumar
                                                        Additional Government Pleader



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                                                                             W.P.(MD)No.25347 of 2024


                                                    ORDER

The present Writ Petition is filed challenging the order of the cancellation

of the registration of the petitioner on the premise that the statutory returns has

not been filed for a continuous period of six months, thereby invoking Section

29(2) of CGST Act.

2. It is submitted by the learned counsel for the petitioner that the returns

have been filed and the appropriate taxes have also been paid and the petitioner

is ready to pay any further taxes that may be due, along with late fee and

interest, as required under GST Act.

3. At the outset, it is submitted by both the learned Counsel for the

petitioner as well as the learned Central Government Standing Counsel for the

respondent that the issue stands covered by a series of judgments, commencing

with the decision in Tvl.Suguna Cutpiece Center Vs. Appellate Deputy

Commissioner (ST) (GST) and others, wherein, under identical circumstances,

this Court has directed the revocation of registration subject to conditions.

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4. This Court has been consistently following the directions issued in

Tvl.Suguna Cutpiece Center's case. Relevant portion of the order is extracted

hereunder:

“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 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

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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. 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 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

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of receipt of a copy of this order.