The Madras High Court, in its recent decision, observed that a business setback and an accountant’s failure to file GST (Goods and Services Tax) returns constitute a genuine cause. Hence, the GST Network must allow the taxpayer to file the returns.
In a petition filed by Tvl. Premium Tyres Private Limited, the applicant whose GST registration was cancelled, cited that they cannot adhere to the GST affairs due to financial constraints and financial setbacks.
Also, it cited that they had assumed that the accountant who was entrusted with the return filing was not able to perform it. The applicant’s counsel, Adv. S.Karunakar said that the taxpayer wished to clear all the obligations with penalty and interest.
After hearing the taxpayer’s submission, Justice Krishnan Ramasamy permitted the clearing of the obligations. As per the Judge, the given reasons for not submitting the returns for 6 months were discovered to be genuine.
As per that, the court set aside the GST cancellation order and asked the GSTN to make the required revisions to the GST portal to enable the taxpayer to submit the returns.
The court mentioned that all due returns are to be submitted within 4 weeks of restoration, including with the payment of tax, interest, and late fees, and explained that such payments shall not be adjusted from any unused ITC.
It also mentioned that any unused ITC will stay frozen till scrutinised and approved by the competent authority. If the applicant fails to follow the norms, relief granted shall automatically cease, the court cautioned.
The case was disposed of.
| Case Title | Tvl.Premium Tyres Private Limited vs The Assistant Commissioner |
| Case No. | W.P.(MD)No.36605 of 2025 |
| For Petitioner | Mr.S.Karunakar |
| For Respondent | Mr.R.Suresh Kumar, AGP |
| Madras High Court | Read Order |
