The Kerala High Court has stayed the GST Registration Cancellation for IMAGE (Indian Medical Association Goes Eco-Friendly), which is Kerala’s largest waste collection unit.

The bench of Justice Bechu Kurian Thomas while granting the interim relief to IMAGE observed that for the continued recognition of the petitioner as an AoP under the Income Tax Act as well as by the Service Tax Authorities and GST Authorities for all these years, the grant of an interim order is essential. Since continuation of the GST registration cancellation order will cause irreparable injury and the balance of convenience is also in favour of the petitioner, it is only appropriate to stay the operation of the order under challenge.

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The petitioner/assessee, IMAGE has been treated as an Association of Persons (for short AoP) under the Income Tax Act, 1961, and that it had registration as an AoP under the erstwhile service tax regime from 2011 onwards. Subsequently, petitioner migrated to the Goods and Services Tax Act after its enactment from 2017 onwards. According to the petitioner the order is perverse and the alternative remedy is not efficacious as well.

The Kerala GST Department has cancelled the registration of IMAGE, the state’s largest medical waste management agency, after the Directorate General of GST Intelligence (DGGI) found irregularities in the registration process. This action has triggered a serious concern, as the collection and treatment of biomedical waste in Kerala now hangs in the balance.

The court while posting the matter on 21.03.2025 stayed the operation of GST registration cancellation order for a period of six weeks.

Case Details

Case Title: Image (Indian Medical Association Goes Eco-Friendly) Versus State Tax Officer

Case No.: WP(C) NO. 5169 OF 2025

Date: 7/02/2025

Counsel For Petitioner: Senior Counsel Sri. Aravind P. Datar, instructed by George Varghese Perumpallikuttiyil

Counsel For Respondent: GP