HC Quashes Retrospective GST Registration Cancellation

Case Details: Tvl A J Power Center vs. Assistant Commissioner of ST Poonamallee Assessment [2026] 184 taxmann.com 691 (Madras)

Judiciary and Counsel Details

C. Saravanan, J.
P. Rajkumar & Sreemannaarayana Mallela for the Petitioner.
Mrs P.Selvi, Govt. Adv. for the Respondent.

Facts of the Case

The petitioner was subjected to inspection by the jurisdictional officer under Tamil Nadu GST Act, pursuant to which a statement was recorded and proceedings were initiated through issuance of DRC-01A proposing demand. Thereafter, a show cause notice (SCN) in Form GST REG-17 proposing the cancellation of the GST registration with retrospective effect and simultaneously suspending the registration. It was contended that such retrospective cancellation of registration from the inception date was legally unsustainable, and challenged the same by filing a writ petition. The matter was accordingly placed before the High Court.

High Court Held

The High Court held that the proposal in the SCN to cancel GST registration retrospectively with effect from 01-07-2017 was not sustainable in law under Section 29 of the CGST Act and Tamil Nadu GST Act read with Rule 22 of CGST Rules and Tamil Nadu GST Rules, as such retrospective cancellation could not be countenanced in the facts of the case. It was held that while the proceedings for cancellation could continue, the retrospective effect proposed in the SCN was liable to be quashed to that limited extent. Accordingly, the Court directed that upon compliance with such conditions and necessary facilitation on the GST portal, the petitioner’s registration was liable to be restored, thereby granting partial relief.

List of Cases Reviewed

Tvl. Suguna Cutpiece Center v. Appellate Deputy Commissioner (ST) (GST) [2022] 135 taxmann.com 234 (Madras)/[2022] 91 GST 77 (Madras)/[2022] 61 GSTL 515 (Madras)/(2022) 99 GSTR 386] (para 8) followed