WP/44532/2026 of M/S.Sri Shanmuga Enterprises Vs Commercial Tax Officer on 2 November 2026

ORDER

The present Writ Petition has been filed challenging the order dated 23.01.2026, whereby the respondent cancelled the petitioner's GST registration.

2. The learned counsel for the petitioner submits that the petitioner is a proprietary concern engaged in providing labour and manpower supply services and is registered under the GST Act. Owing to severe financial hardship, delayed realization of payments, and mounting liabilities, the petitioner was unable to file its statutory returns within the prescribed time.

3. He further submits that the respondent issued a show-cause notice dated 18.08.2025 and thereafter proceeded to pass an ex parte order, cancelling the petitioner's GST registration without affording an effective opportunity of being heard. Subsequently, the petitioner filed an application for revocation of the cancellation. However, the same was also rejected on the ground that the required documents had not been furnished. He contends that the rejection of the revocation application, without proper consideration of the documents and the explanation furnished by the petitioner, is arbitrary and in violation of the principles of natural justice.

WP No. 44532 of 2026

4. He further submits that the petitioner is ready and willing to file all pending GST returns and pay the entire tax liabilities along with applicable interest and late fees/penalty, if any. Consequently, he prays that this Court set aside the impugned orders and direct the respondent to restore the petitioner's GST registration.

5. In reply, the learned Additional Government Pleader (Taxes) 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 23.01.2026. According to the petitioner, due to financial constraints, he had failed to file his returns during the

WP No. 44532 of 2026 the relevant period. 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 23.01.2026 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.

WP No. 44532 of 2026

(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.49995 of 2026 filed to dispense with the production of the original impugned order, is allowed. There shall be no order as to costs. Consequently, the connected Miscellaneous Petition is closed. 02-11-2026 Asi

WP No. 44532 of 2026 KRISHNAN RAMASAMY, J. Asi To The Commercial Tax Officer, Harur Assessment Circle,TVKa Nagar, Varnatheertham, Near PWD Quarters, Harur- 639903. WP No. 44532 of 2026 and WMP Nos.49995 and 49997 of 2026 02-11-2026