M/S Electro Steel Corporation Through Its Constituted Attorney Sri Digvijay Prakash vs. The State Of Jharkhand Through Its Secretary Commercial Tax Deptt

Held

The Court noted that the petitioner's original grievance, which was the cancellation of its GST registration, had been redressed. This was achieved through the order for revocation of the cancellation of registration passed on April 12, 2023, and communicated to the petitioner. The Court also acknowledged the reconciliation exercise held on April 8, 2023, involving the petitioner, the private respondent, and departmental officials, which led to a partial deposit of outstanding GST liability by the private respondent. The Court permitted the petitioner to withdraw the writ petition with the liberty to pursue proceedings under Section 73 of the JGST Act or approach the High Court again if a fresh cause of action arose. The Court did not expressly leave any issue undecided.

Facts

The petitioner, M/s Electro Steel Corporation, filed a writ petition before the Jharkhand High Court challenging the cancellation of its GST registration. The cancellation was related to proceedings initiated under Section 73(1) of the JGST Act for alleged wrongful availment of input tax credit due to mismatches in GSTR-3B and GSTR-2A returns for the period April 2020 to March 2021. Following a court-ordered meeting on April 8, 2023, the petitioner's GST registration was revoked on April 12, 2023. A private respondent also deposited Rs. 1 Lakh towards outstanding GST liability as part of a reconciliation exercise.

Key Issues

1. Whether the petitioner's grievance regarding the cancellation of its GST registration has been redressed, considering the revocation order dated April 12, 2023? (Question of fact) 2. Whether the petitioner should be granted liberty to approach the competent authority or pursue fresh proceedings under Section 73 of the JGST Act or approach the High Court again if necessary? (Question of law) Petitioner's Arguments: The petitioner contended that its GST registration has been revoked, thereby redressing its primary grievance. It sought liberty to withdraw the writ petition and pursue remedies under Section 73 of the JGST Act or file a fresh writ petition if required. Revenue/State's Arguments: The State submitted that the petitioner's grievances were redressed following a meeting and reconciliation exercise held on April 8, 2023, in the presence of the petitioner, private respondent, and departmental officials. The State argued that the writ petition could be disposed of in light of these developments.