A GST registration canceled due to non-filing of returns may be restored by a Writ Court subject to strict conditions including the payment of all outstanding tax, interest, and penalties, and the submission of all pending returns, without immediate utilization of input tax credit.

ORDER

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

The petitioner is a trader in tubes, pipes and remelting scrap ingots of iron or steel and was a registered person under applicable GST laws. Pursuant to a show cause notice dated 12.02.2025 stating that the petitioner had not filed GST monthly returns regularly, the impugned order was issued. According to the petitioner, as the purchasers of goods from the petitioner failed to make payments for the supply of goods, the petitioner was unable to file the monthly GSTR – 3B returns. She had engaged the services of a GST consultant for purposes of complying with requirements under GST laws. Therefore, it is stated that she was shocked to receive the order of cancellation. The present writ petition was filed in the said facts and circumstances.

2. 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).

3. Mr.R.Sethu Prabakaran, learned Government Counsel (Tax), accepts notice on behalf of the respondent. He submits that the GST registration of the petitioner was cancelled on account of the petitioner not filing returns regularly. He 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.

4. 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.

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

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

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.

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.

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

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.

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

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

fine.

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."

6. The restoration of the GST registration is subject to and conditional upon fulfilling the above conditions.

7. Accordingly, W.P.No.17801 of 2026 is disposed of o