M/S Shree Bansi Metal And Alloys PVT. LTD. vs. Union Of INDIA

Held

The Court granted the permission sought by the petitioner to withdraw the Special Civil Application. The Court noted that the petitioner's counsel, on instructions, sought permission to withdraw the petition. The learned Additional Solicitor General for the respondent No. 1 had no objection. Consequently, the petition was disposed of as withdrawn. The Court explicitly clarified that it had not entered into the merits of the matter, meaning the substantive legal questions were not adjudicated upon. The ratio decidendi is that if the underlying issue that led to the filing of a writ petition is resolved, the court may permit withdrawal without delving into the merits, provided the revenue has no objection.

Facts

The petitioner, M/s. Shree Bansi Metal and Alloys Pvt. Ltd., filed a Special Civil Application before the High Court of Gujarat at Ahmedabad challenging an action taken under Rule 86A(1) of the CGST Rules, 2017. The specific action under challenge was the blocking of Input Tax Credit (ITC) amounting to Rs. 33,99,789/-. The revenue, represented by the Union of India, appeared through learned Additional Solicitor General. The petitioner's counsel placed on record a communication dated 23.10.2021, indicating that the ITC had been unblocked. Following this development, the petitioner sought permission to withdraw the petition.

Key Issues

1. Whether the petitioner is entitled to withdraw the Special Civil Application given the subsequent unblocking of Input Tax Credit. The petitioner argued that since the grievance leading to the filing of the petition, namely the blocking of ITC, has been resolved by the unblocking of the credit, the petition has become infructuous and should be permitted to be withdrawn. The revenue, represented by the Union of India, stated that it had no objection to the withdrawal of the petition.