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Tvl.Balu Fabrics v. The Commercial Tax Officer

Madras HC3 Mar 2026WP/8241/2026

Case brief

AI extract

What is this about?

GST registration cancellation; FORM GST REG-19 order; restoration/revival of GSTIN 33ADAPB8366K1ZL; Article 226 Certiorarified Mandamus; Tvl.Suguna Cut Piece Center (2022) 99 GSTR 386 followed; Commercial Tax Officer Pallipalayam Circle; Madras High Court; disposed of at admission by consent; conditions for revival — filing of returns, cash payment of tax/interest/fine/fee, Input Tax Credit scrutiny and approval; no costs; WMP No.8931 of 2026 closed.

What did the court decide?

Writ Petition disposed of in terms of the directions contained in Tvl.Suguna Cut Piece Center, (2022) 99 GSTR 386 (revival of the GST registration subject to the conditions in that decision — filing of returns, payment of tax, interest, fine/fee in cash and scrutiny of Input Tax Credit); no costs; connected WMP No.8931 of 2026 closed. ¶46

Tvl.Balu Fabrics Vs The 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 order passed by the Respondent in FORM GST REG-19 (Ref. No. ZA330525291474E dated 29.05.2025) is liable to be quashed and the petitioner's GST registration (GSTIN 33ADAPB8366K1ZL) restored.

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Court's answer

The order in Tvl.Suguna Cut Piece Center (2022) 99 GSTR 386 will hold good to the present Writ Petition as well.

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Ratio / Principle

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

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Key takeaways

By disposing of the Writ Petition in terms of the directions in Tvl.Suguna Cut Piece Center, the relief and conditions laid down in that decision — including revival of the GST registration upon payment of tax, penalty and uploading of returns, filing of returns for periods prior and subsequent to cancellation, payment of tax/interest/fine/fee in cash and not out of unutilised Input Tax Credit, and utilisation of Input Tax Credit only after scrutiny and approval — apply to the petitioner.ratio¶46

Detailed headnote1 paragraphs

Madras High Court (C. Saravanan, J.), 03-03-2026 — WP No. 8241 of 2026: Writ Petition under Article 226 by Tvl.Balu Fabrics seeking a Writ of Certiorarified Mandamus to quash the order of the Commercial Tax Officer, Pallipalayam Circle, in FORM GST REG-19 (Ref. No. ZA330525291474E dated 29.05.2025) concerning GSTIN 33ADAPB8366K1ZL, and to restore the GST registration. Disposed of at the time of admission with the consent of both learned counsel, both of whom confirmed that the issue was squarely covered by Tvl.Suguna Cut Piece Center v. Appellate Deputy Commissioner (ST) (GST), Salem, (2022) 99 GSTR 386 (Paragraph Nos.227 to 229, extracted in the judgment). Held that the said order 'will hold good to the present Writ Petition also'; the Writ Petition stands disposed of in terms of the directions in Suguna — filing of returns for periods prior and subsequent to cancellation of registration, payment of defaulted tax with interest and fine/fee in cash (not out of unutilised Input Tax Credit), utilisation of Input Tax Credit only after scrutiny and approval, and revival of registration on payment of tax, penalty and uploading of returns — with no costs; connected WMP No.8931 of 2026 closed.

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WP No. 8241 of 2026

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IN THE HIGH COURT OF JUDICATURE AT MADRAS

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DATED: 03-03-2026

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CORAM

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THE HON'BLE MR JUSTICE C. SARAVANAN

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WP No. 8241 of 2026 and WMP No.8931 of 2026

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Tvl.Balu Fabrics Rep by its Proprietor Mr.Kandappa Palanisamy Balakrishnan No.50, Bye pass Road, Pallipalayam Post, Erode, Namakkal 638 006.

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..Petitioner(s)

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The Commercial Tax Officer Pallipalayam Circle, Pallipalayam

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..Respondent(s)

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Writ Petition filed under Article 226 of the Constitution of India, pleased to issue a Writ of Certiorarified Mandamus, calling for the records in Order passed by the Respondent in GSTIN:33ADAPB8366K1ZL in FORM GST REG-19 in Ref. No. ZA330525291474E dated 29.05.2025 and quash the same as arbitrary, bad in law and consequently direct the respondent to restore the GSTN: 33ADAPB8366K1ZL Registration.

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For Petitioner(s): Mr. M. Narasimha Bharathi For Respondent(s): Ms.Amirtha Poonkodi Dinakaran Government Advocate

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ORDER

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Ms.Amirtha Poonkodi Dinakaran, learned Government Advocate takes

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

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WP No. 8241 of 2026

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notice for the Respondent.

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This Writ Petition is being disposed of at the time of admission with

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

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Both the learned counsel for the Petitioner and the learned Government

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Advocate 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:-

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“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.

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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 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

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WP No. 8241 of 2026

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penalty so that it acts as a deterrent on others from adopting casual approach.

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

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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.

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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 these petitioners.

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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.

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

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

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vi.If any Input Tax Credit was earned, it shall be allowed to be utilised only after

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WP No. 8241 of 2026

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scrutinising and approving by the respondents or any other competent authority.

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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.

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

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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.

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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.”

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

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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.

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03-03-2026

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

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