Lakshminarayanan Vs The Assistant commissioner — GST and Indirect Tax | Madras HC (2026)

Lakshminarayanan Vs The Assistant commissioner — GST and Indirect Tax | Madras HC (2026)

What the court decided

AI extract

Outcome

Disposal in terms of the directions in Tvl.Suguna Cut Piece Center ((2022) 99 GSTR 386, Paragraph Nos.227-229), i.e., revival of GST Registration No.33ADJPL4138N1ZA upon filing of outstanding returns and payment of tax, interest, fine/fee in cash (not out of unutilised or unclaimed Input Tax Credit), utilisation of Input Tax Credit only after scrutiny and approval by the Department, post-cancellation returns declaring correct value of supplies with GST paid in cash, and suitable steps through GST Network, New Delhi; no costs; connected WMP.No.6452 of 2026 closed.

Issue for consideration

Whether the proceedings dated 26.12.2024 in Ref.No.ZA331224293333R passed by the respondent should be quashed and the petitioner's GST Registration No.33ADJPL4138N1ZA granted under the TNGST / CGST Act, 2017 restored.

Court's answer

The order in Tvl.Suguna Cut Piece Center ((2022) 99 GSTR 386, Paragraph Nos.227 to 229) will hold good to the present Writ Petition.

Ratio / Principle

The Writ Petition stands disposed of in terms of the directions contained in Tvl.Suguna Cut Piece Center; no costs awarded and the connected Writ Miscellaneous Petition is closed.

Detailed headnote1 paragraphs

W.P. No. 5932 of 2026 (with connected W.M.P. No. 6452 of 2026), High Court of Judicature at Madras, C. Saravanan J., decided on 20-02-2026: Writ petition under Article 226 seeking quashing of the Assistant Commissioner, Suramangalam's proceedings dated 26.12.2024 in Ref. No. ZA331224293333R and restoration of the petitioner's GST Registration No. 33ADJPL4138N1ZA granted under the TNGST / CGST Act, 2017. Disposed of at the admission stage itself with the consent of counsel on both sides, both having confirmed that the issue is squarely covered by this Court's decision in Tvl. Suguna Cut Piece Center v. The Appellate Deputy Commissioner (ST) (GST), Salem, (2022) 99 GSTR 386 (Paragraph Nos. 227-229). Holding that the said order 'will hold good to the present Writ Petition also', the Court disposed of the petition in terms of the directions contained in that decision: revival of registration upon filing of returns for the period prior to cancellation together with defaulted tax, interest, fine and fee for belated filing, payable in cash and not out of unutilised or unclaimed Input Tax Credit; utilisation of any Input Tax Credit only after scrutiny and approval by a competent officer of the Department; payment of GST and filing of returns for the period subsequent to cancellation declaring the correct value of supplies, in cash; restrictions to prevent undue passing of Input Tax Credit or bill trading; instruction to GST Network, New Delhi to alter the portal architecture to permit return filing and payment; registration to stand revived forthwith on payment of tax, penalty and uploading of returns, the exercise to be completed within thirty days. No costs; connected miscellaneous petition closed.

WP No. 5932 of 2026

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 20-02-2026

CORAM

THE HON'BLE MR JUSTICE C. SARAVANAN

WP No. 5932 of 2026 and WMP.No.6452 of 2026

Lakshminarayanan, Represented by its Proprietor, Lakshmi Narayanan Ragavan, 126/1, Kennedy Nagar 3^rd Cross, Suramangalam, Salem, Tamil Nadu – 636 005.

..Petitioner(s)

Vs

The Assistant Commissioner, Suramangalam, Tamil Nadu.

..Respondent(s)

Prayer: Writ Petition filed under Article 226 of the Constitution of India, for issuance of a Writ of Certiorarified Mandamus call for the records of the respondent in Ref.No.ZA331224293333R and quash the proceedings dated 26.12.2024 passed therein and further direct the respondent to restore the petitioner’s GST Registration No.33ADJPL4138N1ZA granted under the TNGST / CGST Act, 2017.

For Petitioner(s): Mr.K.Siri Chandana

For Respondent(s): Mrs.K.Vasanthamala Government Advocate

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WP No. 5932 of 2026

ORDER

Mrs.K.Vasanthamala, learned Government Advocate takes notice for the Respondent.

This Writ Petition is being disposed of at the stage of admission itself

with the consent of the learned counsel for the Petitioner and the learned Government Advocate for the Respondent.

Both the learned counsel for the Petitioner and the learned Additional Government Pleader for the Respondent confirmed that the issue is squarely covered by the decision of this Court in Tvl.Suguna Cut Piece Center, Represented by its Authorized Signatory Vs. The Appellate Deputy Commissioner (ST) (GST), Salem and another, (2022) 99 GSTR 386 wherein, in Paragraph Nos.227 to 229, this Court has observed as under:-

“227. This is a fit case for exercising the power under Article 226 of the Constitution of India in favour of the petitioners by quashing the impugned orders and to grant consequential relief to the petitioners. By doing so, the Court is effectuating the object under the GST enactment of levying and collecting just tax from every assessee who either supplies goods or service. Legitimate Trade and Commerce by every supplier should be allowed to be carried on subject to payment of tax and statutory compliance. Therefore, the impugned orders deserve to be quashed.

228. These petitioners deserve a chance and therefore should be allowed to revive their registration so that they can proceed to regularize the defaults. The authorities acting

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WP No. 5932 of 2026

under the Act may impose penalty with the gravity of lapses committed by these petitioners by issuing notice. If required, the Central Government and the State Government may also suitably amend the Rules to levy penalty so that it acts as a deterrent on others from adopting casual approach.

229. In the light of the above discussion, these Writ Petitions are allowed subject to the following conditions:-

i.The petitioners are directed to file their returns for the period prior to the cancellation of registration, if such returns have not been already filed, together with tax defaulted which has not been paid prior to cancellation along with interest for such belated payment of tax and fine and fee fixed for belated filing of returns for the defaulted period under the provisions of the Act, within a period of forty five (45) days from the date of receipt of a copy of this order, if it has not been already paid.

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 these petitioners.

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

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

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

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WP No. 5932 of 2026

value of supplies and payment of GST shall also be in cash.

vi.If any Input Tax Credit was earned, it shall be allowed to be utilised only after scrutinising and approving by the respondents or any other competent authority.

vii.The respondents may also impose such restrictions / limitation on petitioners as may be warranted to ensure that there is no undue passing of Input Tax Credit pending such exercise and to ensure that there is no violation or an attempt to do bill trading by taking advantage of this order.

viii.On payment of tax, penalty and uploading of returns, the registration shall stand revived forthwith.

ix.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 these petitioners to file their returns and to pay the tax/penalty/fine.

x. 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.”

The above said order will hold good to the present Writ Petition also.

Accordingly, this Writ Petition stands disposed of in terms of the directions contained in Tvl.Suguna Cut Piece Center case (referred to supra ). No costs. Connected Writ Miscellaneous Petition is closed.

20-02-2026

Index: Yes/No Speaking/Non-speaking order Neutral Citation: Yes/No

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WP No. 5932 of 2026

To

The Assistant Commissioner, Suramangalam, Tamil Nadu.

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WP No. 5932 of 2026

C.SARAVANAN, J.

av

WP No. 5932 of 2026 and WMP.No.6452 of 2026

20-02-2026

(2/2)

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