M/S. Francis Switchgears And Controls By Its Proprietor Mr Iruthayanaathan A K v. The Superintendent

IN THE HIGH COURT OF JUDICATURE AT MADRAS Dated :08.04.2025

CORAM

THE HON'BLE Mr. JUSTICE KRISHNAN RAMASAMY W.P.No.12594of 2025 & W.M.P.No.14178 of 2025 M/s.Francis Switchgears and Controls, Rep. by its Proprietor Mr.Iruthayanathan A K, 257/2A, Dharani Nagar, Ganapathy Pudur, Coimbatore, Tamil Nadu-641006.

... Petitioner Vs.

The Superintendent, Thudiyalur Range, Coimbatore, Tamil Nadu.

... 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 records of the impugned order of cancellation of registration vide reference No.ZA3305232422117 dated 27.05.2023 with retrospective effect from 12.05.2023, from the files of the respondent herein, quash the same and further direct the respondent to restore and activate the registration of the petitioner granted under the Central Goods and Services Tax, 2017 and the Tamil Nadu Goods and Services Tax Act, 2017 in GSTIN 33AANPI2599H1ZF.

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For Petitioner : Ms.Aparna Nandakumar For Respondent : Mr.K.S.Ramaswamy Senior Standing Counsel

ORDER

The challenge in this writ petition is to the order dated 27.05.2023 passed by the respondent, cancelling the GST registration of the petitioner.

2. Mr.K.S.Ramaswamy, learned Senior Standing Counsel, takes notice on behalf of the respondent.

3. By consent of the parties, the main Writ Petition is taken up for disposal at the time of admission stage itself.

4. The learned counsel for the petitioner submitted that the Petitioner is a registered tax payer under the GST enactments however, due to financial constraints faced by the petitioner on account of Covid 19 Pandemic,the Petitioner could not file the returns for the continuous period of 6 months. Consequently, the respondent issued a show cause notice on 2/8

12.04.2023, proposing the cancellation of the GST registration for non-filing of returns for a continuous period of six months, and subsequently passing an order of cancellation on 27.05.2023. The learned counsel for the petitioner further submits that since the show cause notice was uploaded in the GST portal without serving physical copy of the same to the petitioner and the petitioner's consultant failed to notice the same and therefore was unaware of the show cause notice uploaded by the respondent in the GST portal and hence failed to submit the reply, which resulted in passing of the impugned order. He therefore prays to set aside the same.

5. On the other hand, the learned Senior Standing Counsel appearing for the respondent submitted that the petitioner did not file returns for a continuous period of six months, which led to the passing of the impugned order. He further submitted that the revocation of the cancellation of registration will be considered only upon payment of all dues and filing of all returns.

6. Heard the learned counsel on either side and perused the materials available on record.

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7. Admittedly, the GST registration of the petitioner was cancelled due to non-compliance in filing returns. Furthermore, the petitioner stated that due to the financial constraint, they could not file the returns and since the show cause notice was uploaded in the GST Portal and as the petitioner's consultant failed to notice the show cause notice uploaded in the GST portal, the petitioner was not aware of the same and hence could not file its reply, which resulted in passing of the impugned order. Therefore, this Court is of the view that the reason provided by the petitioner for non-compliance with the relevant provisions of the Act within the stipulated time appears to be genuine.

8. In view of the above, restoration of the GST registration is subject to and conditional upon fulfilling 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 from the date of receipt of a copy of this order.

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(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 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 scrutinizing and approving by the respondent or any other competent authority.

(vii) If any of the aforesaid conditions is not complied 5/8

with by the petitioner, the benefit granted under this order will automatically ceased to operate.

9. With the above directions, this writ petition is disposed of. No costs. Consequently, connected miscellaneous petitions are closed. 08.04.2025 arr To The Superintendent, Thudiyalur Range, Coimbatore, Tamil Nadu.

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KRISHNAN RAMASAMY.J., arr 7/8

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