Giri Paints vs. The Assistant Commissioner (St)

Facts

The petitioner, Giri Paints, represented by its Proprietor Athimoolam Venkatesh, filed a writ petition challenging an order dated 28.09.2026 issued by the Assistant Commissioner (ST), Rajapalayam Circle-1, cancelling its GST registration (GSTIN/UIN - 33AQWPV7996G1ZN). The cancellation was based on a show cause notice dated 28.07.2026, alleging that the petitioner had not filed GST monthly returns regularly. The petitioner contended that the cancellation caused immense hardship and sought revocation. The respondent argued that the cancellation was due to non-filing of returns and referred to a previous judgment in Suguna Cutpiece, suggesting compliance with its conditions.

Held

The Court held that the writ petition should be disposed of on the same terms as the judgment in Suguna Cutpiece v. Appellate Deputy Commissioner (ST)(GST). The reasoning was to maintain consistency with previous judgments of the Court which had followed the Suguna Cutpiece decision. The ratio decidendi is that GST registration cancellation for non-filing of returns can be revoked subject to strict compliance with specific conditions, including filing all pending returns with tax dues, interest, and late fees, without utilizing unutilized Input Tax Credit (ITC) until scrutinized and approved. Future tax liabilities can be discharged with approved ITC. The Court directed the petitioner to file returns for periods prior and subsequent to cancellation, pay dues, and comply with other conditions within stipulated timelines. The respondent was directed to facilitate the process, including necessary changes in the GST portal if required, within 30 days. The restoration of registration is conditional upon fulfilling these terms.

Key Issues

1. Whether the cancellation of GST registration for non-filing of returns is illegal and violative of principles of natural justice, warranting quashing of the impugned order and restoration of registration? (Question of law and fact, turning on principles of natural justice and relevant GST provisions). Petitioner's arguments: The cancellation of GST registration has caused immense hardship, and it should be revoked. Reliance was placed on the High Court's judgment in Suguna Cutpiece v. Appellate Deputy Commissioner (ST)(GST), W.P.Nos.25048 of 2021 batch. Respondent's arguments: The GST registration was cancelled due to the petitioner's failure to file returns regularly. The order in Suguna Cutpiece was conditional, and the petitioner should be directed to comply with those conditions.