Tniamp-2019-20 Trichy Farmer Producer Company Limited vs. The Commercial Tax Officer

Facts

The petitioner, Trichy Farmer Producer Company Limited, filed a writ petition challenging an order dated 29.07.2025 passed by the Commercial Tax Officer, Ponmalai Assessment Circle, which cancelled the petitioner's GST registration. The cancellation was effective from 29.07.2025. The petitioner sought to quash this order and direct the respondent to revoke the cancellation of their GSTN registration. Both the petitioner and the respondent agreed that the issue was covered by a previous decision of the High Court.

Held

The Court held that the issue was squarely covered by the decision in Tvl.Suguna Cutpiece Center Vs. Appellate Deputy Commissioner (ST) (GST) and others (batch) dated 31.01.2022. Consequently, the impugned order cancelling the petitioner's GST registration was set aside. The respondent was directed to restore the GST registration, subject to the petitioner complying with the conditions stipulated in the Tvl.Suguna Cutpiece Center case. These conditions include filing pending returns, paying outstanding tax, interest, fine, and fees within 45 days, with such payments not to be made from Input Tax Credit (ITC). Unutilized ITC would be subject to scrutiny and approval by a competent officer. The petitioner was also required to pay GST and file returns for the period subsequent to cancellation in cash. The registration would be revived forthwith upon compliance. The respondent was to take steps to enable the petitioner to file returns and pay dues, and this exercise was to be completed within 30 days.

Key Issues

1. Whether the cancellation of the petitioner's GST registration is illegal and arbitrary, requiring revocation? (Question of law and fact, concerning the validity of the cancellation order). Contentions: Petitioner: Argued that the cancellation of GST registration was illegal and arbitrary, seeking its revocation. Relied on the High Court's decision in Tvl.Suguna Cutpiece Center Vs. Appellate Deputy Commissioner (ST) (GST) and others (batch) dated 31.01.2022. Respondent: Submitted that the issue was squarely covered by the decision in Tvl.Suguna Cutpiece Center Vs. Appellate Deputy Commissioner (ST) (GST) and others (batch) dated 31.01.2022, implying agreement with the petitioner's reliance on this precedent.