WP/42556/2026 of H.Neduvennilavu Vs The Superintendant of GST and Central Excise on 15 October 2026

ORDER

The present Writ Petition has been filed challenging impugned order dated 03.03.2023 passed by the respondent.

2. Mr. S. Meganathan, learned Junior Standing Counsel, on behalf of Mr.S.Gurumoorthy, learned Senior Standing Counsel takes notice for 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 submits that the petitioner is running a proprietary concern under the trade name M/s. Perfect Sign Creations and is engaged in providing design services. The petitioner has filed GST returns (both GSTR-1 and GSTR-3B) and paid taxes up to the month of January 2022. Due to certain financial constraints on account of business losses, compounded by health issues, the petitioner was unable to file subsequent GST returns post-January 2022. Under these circumstances, the GST registration of the petitioner was cancelled suo motu by the respondent vide order dated 03.03.2023, without serving any notice or providing an opportunity for a personal hearing, which is in clear violation of the principles of natural justice. Hence, the present Writ Petition has been filed.

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 Standing Counsel appearing for the respondent would submit that as per the settled position of law laid down by this Court in the case of "Suguna Cutpiece Centre Vs. the Appellate Joint Commissioner of GST (ST) (GST) and Another", the request of the petitioner may be considered by the respondent subject to payment of entire tax dues including penalty along with all other returns, within time bound manner.

6. Heard the learned counsel appearing for the petitioner and the learned Standing Counsel appearing for the respondent and perused the materials placed before this Court.

7. In this case, the GST registration of the petitioner was cancelled by the respondent vide the impugned order dated 03.03.2023. According to the petitioner, due to financial constraints, he failed to file his returns for the period post-January 2022. The reason provided for non-compliance 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 03.03.2023 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 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.

9. With the above directions, this Writ Petition is disposed of. W.M.P.No.47827 of 2026 filed to dispense with the production of the original impugned order, is allowed. There shall be no order as to costs. 15-10-2026 Asi To The Superintendent of GST and Central Excise, Range-I, Anna Nagar Division North Commissionerate, 2054, 12th Main Road, Newry Tower, Anna Nagar, Chennai - 600 040.

KRISHNAN RAMASAMY, J. Asi WP No. 42556 of 2026 and WMP No.47827 of 2026 15-10-2026