Lyyanan Eswaran vs. The Assistant Commissioner (St)

Held

The Court decided to follow its previous judgment in Suguna Cutpiece v. Appellate Deputy Commissioner (ST)(GST), which had directed the restoration of GST registration subject to several terms and conditions. The reasoning was to maintain consistency with prior rulings. The operative directions from the Suguna Cutpiece judgment were reiterated and applied to the present case. These directions included the petitioner filing all pending returns prior to cancellation, along with tax dues, interest, and late fees within 45 days; prohibiting the use of unutilized Input Tax Credit (ITC) for these payments; requiring scrutiny and approval of any remaining ITC before its utilization for future liabilities; filing returns and paying GST for the period subsequent to cancellation; and allowing the utilization of approved ITC only after scrutiny. The respondents were directed to take steps to enable the petitioner to file returns and pay dues on the GST portal within 30 days of receiving the order. The restoration of registration was made conditional upon the fulfillment of these terms.

Facts

The petitioner, Iyyanan Eswaran, proprietor of a works contract service provider, challenged an order dated 20.02.2025 by the Assistant Commissioner (ST), Madurai Rural (East) Assessment Circle, cancelling his GST registration (GSTIN: 33AAAPE5413B1ZP) with effect from 01.09.2024. The cancellation was based on a show cause notice dated 10.01.2025, alleging non-filing of GST monthly returns regularly. The petitioner sought quashing of the cancellation order and restoration of his registration, subject to fulfilling pending return filing and late fee payment obligations.

Key Issues

1. Whether the cancellation of the petitioner's GST registration, purportedly for non-filing of returns, was illegal, arbitrary, and in violation of the principles of natural justice? Petitioner's contention: The cancellation of GST registration caused immense hardship and 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 contention: The GST registration was cancelled due to the petitioner not filing returns regularly. The respondent argued that the order in Suguna Cutpiece was conditional and that the petitioner should comply with all stipulated conditions for restoration.