2026 (3) TMI 191 - HC - GST

Restoration of GST registration via writ jurisdiction after unblocking of electronic credit ledger, subject to compliance conditions.

Restoration of a cancelled GST registration was ordered where the Electronic Credit Ledger was unblocked after re-inspection; the court applied writ ... Seeking application for revocation of the cancelled GST registration in terms of Section 30 of the respective GST Enactments - exercise of writ jurisdiction under Article 226 - application of conditions for revival of registration. GST registration restoration - HELD THAT: - The Court noted that the petitioner's Electronic Credit Ledger, which had been blocked, was subsequently unblocked after a second inspection of the premises. Relying upon the Court's earlier decision in Tvl. Suguna Cut Piece Center [2022 (2) TMI 933 - MADRAS HIGH COURT] the Court held that it was appropriate to exercise its writ jurisdiction under Article 226 to revive the registration. The Court applied the revival framework and conditions set out in Tvl. Suguna Cut Piece Center-including requirements for filing returns, payment of tax, interest, fines and fees, restrictions on utilization of Input Tax Credit pending scrutiny, and other safeguards-to the present petition. The Court observed that this course is appropriate notwithstanding that the petitioner ought to have filed an application under Section 30, and directed that the writ petition be disposed of in terms of the directions in the cited precedent. Registration restored and the writ petition disposed of in terms of the directions contained in Tvl. Suguna Cut Piece Center; petitioner to comply with the specified conditions for revival. Final Conclusion: The High Court exercised its Article 226 jurisdiction to order restoration of the petitioner's cancelled GST registration, directing revival in accordance with the conditions and safeguards laid down in Tvl. Suguna Cut Piece Center; the writ petition is disposed of on those terms. Issues: Whether the petitioner's cancelled GST registration can be restored/revoked following inspection, and whether relief should be granted in terms of the directions in Tvl.Suguna Cut Piece Center.Analysis: The Court considered that the petitioner's premises were subsequently inspected and that the Electronic Credit Ledger, earlier blocked, has been unblocked after a second inspection. The Court noted established precedent in Tvl.Suguna Cut Piece Center permitting exercise of writ jurisdiction to quash cancellation orders and to allow revival of registration subject to specified conditions (including filing returns, payment of tax, interest, penalties, restrictions on input tax credit utilization and departmental scrutiny). The Court observed that, although an application under Section 30 for revocation ordinarily should be filed, the factual developments and unblocking of the credit ledger justified restoration by exercising Article 226 jurisdiction in line with the referenced precedent.Conclusion: The Court ordered restoration of the petitioner's GST registration in terms of the directions contained in Tvl.Suguna Cut Piece Center, thereby granting relief in favour of the assessee.