The Madras High Court has directed the reinstatement of Goods and Service Tax (GST) registrations that were previously cancelled due to non-payment of tax. However, revival is contingent upon clearing any outstanding tax dues.
M/S Smt Ready Mix Concrete, the petitioner in this case, contested the actions of the 1st respondent. They aimed to invalidate these actions as unlawful and demanded the 1st respondent reverse the cancellation of their GST registration within a specified timeframe.
Representing the respondent, Mr. A.P. Srinivas, Senior Standing Counsel, argued the case. The petitioner’s counsel highlighted the alignment of the present petition with a previous court judgment in W.P.No.25048 of 2021 dated 23.09.2021, where the court ruled in favour of a similar case.
The court viewed that by not permitting the applicants to revive their GST registration is to de-recognize a complete lot of entrepreneurs and to not collect GST at all from them.
This situation would strain the system as these petitioners might continue operating without paying the required GST, ultimately resulting in government revenue loss, contrary to the purpose of the GST enactments.
Highlighting the intentions behind GST enactments, rules, clarifications, and notifications issued by the Central Government and the GST Council, the Court emphasized facilitating reentry into the GST system rather than debarring or disavowing assessees.
In its ruling, the Court specified that if the petitioner is liable for any outstanding tax or penalties, they must comply with the law. Justice Krishnan Ramasamy, in a Single Bench decision, rejected the challenged proceedings and instructed the respondent department to reinstate the petitioner’s GST registration.
| Case Title | M/S SMT Ready Mix Concrete V/S Additional Commissioner |
| Case No. | W.P.No.28249 of 2023 and WMP.No.27773 of 2023 |
| Date | 08.12.2023 |
| For Petitioner | Mr.M.Dinesh |
| For Respondents | Mr.A.P.Srinivas Senior Standing Counsel |
| Madras High Court | Read Order |
