Annai Trading Corporation v. The Assistant Commissiner
IN THE HIGH COURT OF JUDICATURE AT MADRAS Dated : 18.03.2025
CORAM
THE HON'BLE Mr. JUSTICE KRISHNAN RAMASAMY & W.M.P.No.10112 of 2025 Annai Trading Corporation, Rep by its Proprietor, M.Senthil Murugan, No.16/64, Menabal Salai, Vivekandangar, Kodungaiyur, Chennai ... Petitioner Vs.
The Assistant Commissioner, Kodungaiyur Assessment Circle, Chennai ... Respondent Prayer:
Writ Petition filed under Article 226 of the Constitution of India praying to issue a Writ of Certiorarified Mandamus, to call for the impugned cancellation order viz., Form GST REG-19 in Ref.No.ZA3302240441056 dated 08.02.2024 in Application Ref.No.(ARN) AA331123035433U in GSTIN/UIN 33BZCPS287OJIZ5 and quash the same as the impugned proceedings of the respondent to restore and activate the registration in GSTIN/UIN 33BZCPS287OJIZ5 1/7
granted under the CGST Act, 2017 and TNGST Act, 2017. For Petitioner : Ms.S.Thankira For Respondent : Ms.K.Vasanthamala, Government Advocate
ORDER
This writ petition has been filed challenging the impugned order dated 08.02.2024 passed by the respondent.
2. Ms.K.Vasanthamala, learned Government Advocate, takes notice on behalf of the respondent. By consent of the parties, the main writ petition is taken up for disposal at the admission stage itself.
3. The learned counsel for the petitioner would submit that the petitioner had entrusted an Auditor for handling the tax matters, viz., filing of returns, payment of GST, etc. However, due to the inaction on the part of the aforesaid Auditor, no GST returns were filed for a period of 6 months. Under these circumstances, the GST Registration of the petitioner was cancelled by the respondent vide impugned order dated 2/7
08.02.2024.
4. Further, he would submit that the petitioner is willing to file his GST returns and pay the entire tax liabilities along with applicable interest and penalty, if any. Hence, he requests this Court to revoke the order passed by the respondent for cancellation of GST Registration of the petitioner.
5. In reply, the learned Government Advocate for the respondent confirms that the GST registration of the petitioner was cancelled by the respondent vide impugned order dated 08.02.2024 and requests this Court to pass an appropriate order.
6. Heard the learned counsel for the petitioner and the learned Government Advocate for the respondent and also perused the materials available on record.
7. In this case, the GST registration of the petitioner was cancelled by the respondent vide the impugned order dated 08.02.2024. According 3/7
to the petitioner, the Auditor, who was entrusted by him, had failed to file his returns continuously for a period of 6 months and hence, the GST Registration of the petitioner was cancelled by the respondent vide impugned order dated 08.02.2024. The reason provided for noncompliance with the relevant provisions of the Act within the prescribed time, in the considered opinion of this Court, appears to be genuine.
8. In view of the above, this Court is inclined to revoke the impugned order dated 08.02.2024 passed by the respondent canceling the GST registration of the petitioner. The cancellation of registration is hereby revoked, subject to the fulfillment of the following conditions: (i) 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, within a period of four weeks therefrom. (ii) The petitioner is directed to file returns for the period till date, if not filed, together with tax dues along with interest thereon and the fee fixed for belated filing 4/7
of returns within a period of 4 weeks from the date of restoration of GST Registration of the petitioner. (iii) It is made clear that such payment of tax, interest, fine/fee 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.
(iv) 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. (v) Only such approved ITC shall be allowed to be utilized thereafter for discharging future tax liability under the Act and Rules.
(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) If any of the aforesaid conditions is not complied with by the petitioner, the benefit granted under this order will automatically ceased to operate. 5/7
9. With the above directions, this writ petition is disposed of. No cost. Consequently, the connected miscellaneous petitions are also closed.
18.03.2025 Speaking/Non-speaking order Index : Yes / No nsa To The Assistant Commissioner, Kodungaiyur Assessment Circle, Chennai 6/7
KRISHNAN RAMASAMY.J., nsa & W.M.P.No.10112 of 2025 18.03.2025 7/7