[Cites 3, Cited by 0]
Madras High Court
Tvl. A J Power Center vs Assistant Commissioner St on 10 March, 2026
Author: C.Saravanan
Bench: C. Saravanan
WP No. 9450 of 2026
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 10-03-2026
CORAM
THE HON'BLE MR JUSTICE C. SARAVANAN
WP No. 9450 of 2026
and
W.M.P.Nos.10174 and 10175 of 2026
Tvl. A J Power Center
(Rep. by its Proprietor V.Varadharajan)
No.1/160, Moutn Poonamallee High Road,
Iyyappanthangal, Chennai,
Kancheepuram, Tamilnadu-600 056
..Petitioner(s)
Vs
1. Assistant Commissioner ST
Poonamallee Assessment Circle,
Integrated Commercial taxes Building,
3rd Floor, Varadharajapuram,
Nazarathpet, Chennai-600 123
2. State Tax Officer
Group-X, Office of the Joint Commissioner (ST)
Intelligence-II, 1st Floor, PAPJM Buildings,
Greams Road, Chennai-06
..Respondent(s)
Prayer: This petition is filed under Section 226 of the Constitution
of India to issue a writ of certiorarified Mandamus calling for the records of the
first respondent impugned notice in Form GST REG-17 bearing Ref.
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WP No. 9450 of 2026
No.ZA330226292305O dated 27.02.2026 and the connected detailed notice
bearing Ref. GSTN 33AMFPV0455M1ZR / 2025-26 dated 27.02.2026 quash
the same and consequently directing the first respondent herein to restore the
petitioners GST Registration forthwith and pass orders.
For Petitioner(s): Mr.P. Rajkumar for Mr. Sreemannaarayana
Mallela
For Respondent(s): Mrs.P.Selvi, Government Advocate
ORDER
Mrs.P.Selvi, Government Advocate, takes notice for the
Respondents.
2. This Writ Petition is being disposed of at the stage of admission itself
with the consent of the learned counsel for the Petitioner and the learned
Government Pleader for the Respondents.
3. In this writ petition, the petitioner has challenged the impugned notice
dated 27.02.2026 in form GST Reg-17, whereby the GST registration is
proposed to be cancelled. However it also suspends the GST Registration of the
petitioner with effect from 01.07.2017. The petitioner in the above writ
petitioner is represented by its proprietor who is also the of the Director of the
petitioner in W.P.No.9579 of 2026.
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4. The case on record reveals that the second respondent had recorded a
statement under Section 67 of TNGST Act, 2017 from the petitioner on
14.11.2025, pursuant to which the first respondent/ Assistant Commissioner ST
has issued a Show Cause Notice on 27.02.2026 to the petitioner, based on the
inspection carried on 13.11.2025, statement recorded on 14.11.2025 and in the
background of a demand notice issued to the petitioner in DRC-01A on
18.02.2026.
5. It appears that the personal hearing was also fixed on 05.03.2026. The
petitioner has however approached the Court by way of filing this writ petition
on 05.03.2026.
6. The Additional Government Pleader submits that the writ petition is to
be dismissed as prematured .
7. The impugned Show Cause Notice in Form GST Reg-17 has been
issued on 27.02.2026 and proposes to cancel the GST registration of the
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petitioner with effect from 01.07.2017 cannot be countenanced. Therefore to
that extent the impugned Show Cause Notice stands quashed.
8. The respondent is therefore directed to pass orders ins response to the
show cause notice issued to the petitioner by following the guidelines issued by
this Court in Tvl.Suguna Cut Piece Center, Represented by its Authorized
Signatory V. The Appellate Deputy Commissioner (ST) (GST), Salem and
another [(2022) 99 GSTR 386], wherein, in Paragraph Nos.227 to 229, this
Court has observed as under:-
“227. This is a fit case for exercising the power under Article 226
of the Constitution of India in favour of the petitioners by quashing
the impugned orders and to grant consequential relief to the
petitioners. By doing so, the Court is effectuating the object under
the GST enactment of levying and collecting just tax from every
assessee who either supplies goods or service. Legitimate Trade
and Commerce by every supplier should be allowed to be carried
on subject to payment of tax and statutory compliance. Therefore,
the impugned orders deserve to be quashed.
228. These petitioners deserve a chance and therefore should be
allowed to revive their registration so that they can proceed to
regularize the defaults. The authorities acting under the Act may
impose penalty with the gravity of lapses committed by these
petitioners by issuing notice. If required, the Central Government
and the State Government may also suitably amend the Rules to
levy penalty so that it acts as a deterrent on others from adopting
casual approach.
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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 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.
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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 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.
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.”
9. The above said order will be applicable to the present writ petition also.
Hence, this Writ Petition stands disposed of in terms of the directions issued in
Tvl.Suguna Cut Piece Center referred to supra. Consequently, connected
miscellaneous petition are closed. No costs.
10-03-2026
Index: Yes/No
Speaking/Non-speaking order
Neutral Citation: Yes/No
SMN
Note: Issue order copy on 11.03.2026
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To
1. Assistant Commissioner ST
Poonamallee Assessment Circle,
Integrated Commercial taxes Building,
3rd Floor, Varadharajapuram,
Nazarathpet, Chennai-600 123
2. State Tax Officer
Group-X, Office of the Joint Commissioner (ST)
Intelligence-II, 1st Floor, PAPJM Buildings,
Greams Road, Chennai-06
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C.SARAVANAN, J.
SMN
and
W.M.P.Nos.10174 and 10175 of 2026
10-03-2026
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