Macleods Pharmaceutical LTD. vs. Prakash Kumar And Another

Held

The Court held that the direction to 'consider' a case requires the authority to apply its mind to the facts and circumstances and then take a decision in accordance with law. The respondents had indeed considered the petitioner's case for amendment of the TRAN-1 form, taking into account the judgment in Adfert Technologies Pvt. Ltd. and the communication dated 09.05.2019, along with other related aspects. They arrived at a decision on December 2, 2019, communicated via a letter dated January 6, 2020, not permitting the amendment. The Court emphasized that whether this decision was in consonance with the law was not to be adjudicated in a contempt petition. Since a decision was taken by the respondents, they could not be said to have flouted the judgment. Therefore, no contempt was made out. The Court dismissed the contempt petition, discharged the notice, and reserved liberty for the petitioner to seek appropriate remedy if still aggrieved by the order passed by the respondents.

Facts

The petitioner, Macleods Pharmaceutical Ltd., filed a contempt petition alleging wilful disobedience of a High Court judgment dated November 20, 2019, in CWP No.1551 of 2018. The original writ petition sought directions for the respondents to consider the petitioner's case for amendment of the TRAN-1 form, as the petitioner had a CENVAT Credit balance of Rs.7,51,33,423/- in June 2017 and another TRAN-1 form for Rs.14,71,031/- was credited on October 26, 2017. The petitioner claimed inability to amend the TRAN-1 form under the GST Act. The writ petition was disposed of with a direction to the respondents to consider the petitioner's case for amendment of TRAN-1 and pass appropriate orders within three weeks. The contempt petition was filed alleging non-compliance. The respondents submitted that the petitioner's case was considered in a meeting of the IT Grievance Redressal Committee on December 2, 2019, which found that the petitioner had filed '0' in the disputed field and no technical glitch was found, thus not qualifying for reopening the portal.

Key Issues

1. Whether the respondents have wilfully disobeyed the order dated 20.11.2019 passed by this Court in CWP No.1551 of 2018, which directed them to 'consider' the case of the petitioner for amendment of TRAN-1 form and pass appropriate orders. Petitioner's Contention: The respondents failed to comply with the directions of the Court as their consideration order was not in conformity with the judgment of the Punjab & Haryana High Court in Adfert Technologies Pvt. Ltd. (supra) and the communication dated 09.05.2019. Therefore, they are liable for contempt. Respondents' Contention: The directions of the Court have been complied with. The petitioner's case was considered in accordance with law and rejected. Hence, no contempt is made out.