WP/42506/2026 of M/s. BT Construction Vs The Assistant Commissioner on 15 October 2026

ORDER

The present Writ Petition has been filed challenging the order dated 19.08.2024, whereby the respondent cancelled the petitioner's GST registration.

2. The learned counsel for the petitioner submitted that the petitioner provides works contract construction services to private individuals and private limited companies. As the petitioner's activities are project-driven and dependent on individual contracts, the business is seasonal in nature. Consequently, in the ordinary course of business, there are periods during which the petitioner records nil outward supply turnover. During the financial year 2023–24, the petitioner’s business remained inactive owing to acute financial constraints and pressing family circumstances. Furthermore, the Accountant then handling the petitioner's statutory compliances failed to file NIL returns under the mistaken belief that no returns were required since the threshold turnover limit had not been exceeded for the said period.

3. She further submitted that the respondent issued a show-cause notice dated 01.07.2024 solely via the online portal, directing the petitioner to furnish a reply within seven working days. The subsequent impugned order dated 19.08.2024 was never served physically upon the petitioner. Consequently, the petitioner was entirely unaware of the initiation of the assessment proceedings, resulting in a gross violation of the principles of natural justice.

4. She further submitted that the petitioner is willing to file his GST returns and pay the entire tax liabilities along with applicable interest and penalty, if any. Consequently, she requested this Court to set aside the impugned order and direct the respondent to restore the petitioner's GST registration.

5. In reply, the learned Government Advocate 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 Additional Government Pleader 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 19.08.2024. According to the petitioner, due to financial constraints, he had failed to file his returns during the year 2024. 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 19.08.2024 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 (4) 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.47762 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 Assistant Commissioner, Namakkal Rural Assessment Circle, Integrated Commercial Taxes Building, First Floor Opposite to BSNL Mohanur Road, Namakkal Tamil Nadu 637 001.

KRISHNAN RAMASAMY, J. Asi WP No. 42506 of 2026 and WMP No.47762 of 2026 15-10-2026