Disposed¶47

Madhav Associates v. Commercial Tax Officer

Madras HC20 Jul 2026WP/26158/2026

Case brief

AI extract

What is this about?

GST registration cancellation; conditional restoration/revocation on filing arrears returns with tax, interest and belated-filing fee within 45 days; no adjustment from unutilised ITC; ITC use only after scrutiny/approval; revival forthwith on payment and uploading of returns; GST Network portal changes within 30 days; Madras HC follows Suguna Cutpiece (W.P.Nos.25048 of 2021 batch); Article 226 certiorari; Form GST REG-19 dt.30.04.2025; CTO Kodambakkam Assessment Circle.

What did the court decide?

Restoration/revocation of the petitioner's cancelled GST registration on the same terms and subject to the same conditions as laid down in Suguna Cutpiece; no order as to costs; connected WMP Nos.28559 and 28560 of 2026 closed. ¶47

Madhav Associates Vs Commercial Tax Officer — Writ and Judicial Review | Madras HC (2026)

What the court decided

AI extract

Outcome

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Issue for consideration

Whether the cancellation of the petitioner's GST registration should be revoked/quashed. +1 more

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Court's answer

To maintain consistency, this Court followed its earlier judgment in Suguna Cutpiece, noting that the said judgment was thereafter followed in many cases.

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Ratio / Principle

Restoration of the petitioner's GST registration is made subject to, and conditional upon, fulfilment of the conditions laid down in Suguna Cutpiece, viz., filing of pre-cancellation returns with tax dues, interest and belated-filing fee within forty-five days; payment not permitted from unutilised or unclaimed Input Tax Credit; unutilised ITC to be utilised only after scrutiny and approval by a competent officer, and thereafter only for discharging future tax liability; payment of GST and filing of post-cancellation returns declaring the correct value of supplies; revival of registration forthwith upon payment of tax, penalty and uploading of returns; and steps by the respondents through GST Network, New Delhi within thirty days to enable filing and payment on the portal.

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Key takeaways

The writ petition is disposed of on the same terms as Suguna Cutpiece, restoring the GST registration on the aforesaid conditional terms, without any order as to costs, and the connected miscellaneous petitions are closed.ratio¶47

Detailed headnote1 paragraphs

Madras High Court (Senthilkumar Ramamoorthy, J.) disposed of WP No.26158 of 2026 under Article 226 challenging cancellation (Form GST REG-19 No.ZA330425320904R, dt.30.04.2025) of the petitioner's GST registration, issued pursuant to a show cause notice dt.12.03.2025 alleging irregular filing of monthly GST returns. Following its own judgment in Suguna Cutpiece v. Appellate Deputy Commissioner (ST)(GST), W.P.Nos.25048 of 2021 batch 'in order to maintain consistency', the Court restored the registration conditionally: (i) file all pre-cancellation returns with tax dues, interest and belated-filing fee within 45 days; (ii) such payments shall not be made or adjusted out of unutilised/unclaimed Input Tax Credit; (iii)-(iv),(vi) unutilised ITC to be utilised only after scrutiny and approval by a competent officer and thereafter only for future tax liability; (v) pay GST and file post-cancellation returns declaring correct value of supplies; (vii) registration stands revived forthwith on payment of tax, penalty and uploading of returns; (viii)-(ix) respondents to instruct GST Network, New Delhi, within 30 days, to enable return filing and payment on the portal. Writ petition disposed of on the same terms without costs; connected miscellaneous petitions closed.

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WP No. 26158 of 2026

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IN THE HIGH COURT OF JUDICATURE AT MADRAS

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DATED: 20-07-2026

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CORAM

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THE HON'BLE MR JUSTICE SENTHILKUMAR RAMAMOORTHY

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WP No. 26158 of 2026 and WMP No.28559 and 28560 of 2026

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Madhav Associates Rep. by its Proprietor Sooraiyur Veeraghavachari Sampath Kannan, New No.21, Old no. 9, Baktavatsalam Street, West Mambalam, Chennai Tamilnadu-600 033

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..Petitioner(s)

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Commercial Tax Officer Kodambakkam Assessment Circle, No.1, PAPJAM Annex building, 4^th Floor, Greams Road, Chennai-600 006

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..Respondent(s)

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PRAYER: Writ Petition is filed under Article 226 of the Constitution of India, for issuance of Writ of Certiorari, calling for the records on the file of the Respondent and quash the impugned Order in Form GST REG-19 bearing No. ZA330425320904R dated 30.04.2025 passed by the Respondent.

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For Petitioner(s): M/s.D.S.Vipula For Respondent(s): Ms.Amirta Dinakaran Government Counsel (Tax)

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ORDER

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The petitioner challenges an order of cancellation of his GST registration.

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The petitioner was a registered person under applicable GST laws. Pursuant to

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Page1 of 6

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https://www.mhc.tn.gov.in/judis

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WP No. 26158 of 2026

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a show cause notice dated 12.03.2025 stating that the petitioner had not filed

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GST monthly returns regularly, the impugned order was issued.

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Learned counsel for the petitioner submits that the cancellation of the GST registration is causing immense hardship and that such cancellation should be revoked. In support of his contentions, he draws reference to the Judgment of this Court in Suguna Cutpiece v. Appellate Deputy Commissioner (ST)(GST), W.P.Nos.25048 of 2021 batch (Suguna Cutpiece) .

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Ms.Amirta Dinakaran, learned Government Counsel (Tax), accepts notice on behalf of the respondent. She submits that the GST registration of the petitioner was cancelled on account of the petitioner not filing returns regularly. She further submits that the order issued in Suguna Cutpiece was a conditional order and that the petitioner should be directed to comply with all conditions stipulated therein.

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In Suguna Cutpiece , this Court directed restoration of GST registration subject to several terms and conditions. The said judgment was followed thereafter in many cases. In order to maintain consistency, I am inclined to follow the said judgment.

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In the operative portion thereof, the following directions were issued:

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Page2 of 6

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https://www.mhc.tn.gov.in/judis

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WP No. 26158 of 2026

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"i. The petitioner is directed to file her returns for the

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period prior to the cancellation of registration, together with tax dues along with interest thereon and the fee fixed for belated filing of returns within a period of forty five (45) days from the date of receipt of a copy of this order.

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ii. It is made clear that such payment of tax, interest, fine / fee and etc. shall not be allowed to be made or adjusted from and out of any Input Tax Credit which may be lying unutilized or unclaimed in the hands of the petitioner.

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iii. If any Input Tax Credit has remained unutilized, it shall not be utilised until it is scrutinized and approved by an appropriate or competent officer of the Department.

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iv. Only such approved Input Tax Credit shall be allowed to utilized thereafter for discharging future tax liability under the Act and Rules.

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v. The petitioner shall also pay GST and file the returns for the period subsequent to the cancellation of the registration by declaring the correct value of supplies.

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vi. If any Input Tax Credit was earned, it shall be allowed

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to be utilised only after scrutinising and approving by the respondents or any other competent authority.

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Page3 of 6

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https://www.mhc.tn.gov.in/judis

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WP No. 26158 of 2026

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vii. On payment of tax, penalty and uploading of returns,

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the registration shall stand revived forthwith.

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viii. The respondents shall take suitable steps by instructing GST Network, New Delhi to make suitable changes in the architecture of the GST Web portal to allow

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the petitioner to file the returns and to pay the tax / penalty / fine.

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ix. The above exercise shall be carried out by the respondents within a period of thirty (30) days from the date of receipt of a copy of this order."

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