Rsa Motors Private Limited vs. Union Of INDIA And Others

Facts

The petitioner, RSA Motors Private Limited, is challenging a show cause notice (Form GST DRC-01) dated November 29, 2024, issued under Section 73 of the Central Goods and Services Tax Act, 2017. The notice pertains to the tax period from April 2020 to March 2021. The respondent/Revenue, represented by Mr. Sourabh Goel, Senior Standing Counsel, submitted that a final order had already been passed by the competent authority on February 22, 2025. Consequently, the petition had lost its efficacy. The petitioner's counsel then sought permission to withdraw the petition to pursue other available legal remedies.

Held

The Court noted the submission by the Revenue that a final order had been passed by the competent authority on February 22, 2025, rendering the writ petition challenging the show cause notice ineffective. Faced with this development, the petitioner's counsel sought permission to withdraw the petition to pursue other admissible legal remedies. The Court, in light of these submissions, allowed the withdrawal of the petition with the liberty prayed for by the petitioner. The operative direction was to dismiss the petition as withdrawn with the liberty to pursue other remedies.

Key Issues

1. Whether the present writ petition has lost its efficacy due to the passing of a final order by the competent authority, rendering the challenge to the show cause notice infructuous. Petitioner's contention: The petitioner, through their counsel, sought to withdraw the petition to avail other remedies available in law, implicitly acknowledging the changed circumstances post the final order. Revenue's contention: The Revenue, through its counsel, submitted that since a final order had been passed by the competent authority on February 22, 2025, the writ petition challenging the show cause notice had lost its efficacy and should be disposed of accordingly.