M/S Ag Traders vs. Principal Commissioner Of Department Of Trade And Taxes, Government Of Nct Of Delhi
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The petitioner, M/s AG Traders, filed a writ petition before the Delhi High Court seeking directions to the respondent, the Principal Commissioner of the Department of Trade and Taxes, Government of NCT of Delhi, to cancel its GST registration. The petitioner stated that it had submitted an application for cancellation of registration on May 28, 2024, but no action had been taken by the respondent. The respondent, through its counsel, stated on instructions that the petitioner's application would be disposed of within two weeks from the date of the order and requested directions for a time-bound decision.
Held
The Court directed the respondent, the Principal Commissioner of the Department of Trade and Taxes, Government of NCT of Delhi, to decide the petitioner's application for cancellation of GST registration within a period of two weeks from the date of the order. The Court disposed of the petition in terms of this direction. The reasoning was based on the respondent's undertaking to dispose of the application within the specified timeframe. The ratio decidendi is that when a statutory authority undertakes to dispose of an application within a specific period, the High Court can issue directions to that effect to ensure timely administrative action. No specific GST Act or Rule provisions were explicitly discussed or relied upon in the operative part of the order, other than the general context of GST registration cancellation.
Key Issues
1. Whether the Court should issue directions to the respondent to decide the petitioner's application for cancellation of GST registration within a stipulated time frame, given the delay in processing. Petitioner's contention: The petitioner argued that it had duly applied for the cancellation of its GST registration on May 28, 2024, and the respondent's inaction warranted judicial intervention to ensure timely disposal of the application. The petitioner sought a direction from the Court to compel the respondent to act on its application. Respondent's contention: The respondent, through its counsel, acknowledged the petitioner's application and stated on instructions that it would be disposed of within two weeks. The respondent agreed to directions being issued for a time-bound decision on the application.
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O R D E R
The petitioner has filed the present petition, inter-alia, praying that directions be issued to the respondent to cancel its GST registration. The petitioner claims that he had filed an application to the aforesaid effect on 28.05.2024, but no steps have been taken by the respondent in this regard.
Mr. Rajeev Aggarwal, learned counsel, who appears for the respondent on advance notice states on instructions that the petitioner’s application will be disposed of within a period of two weeks from date. He fairly states that directions be issued for permitting the respondent to decide the application in a time bound manner.
In view of the above, we direct the respondent to decide the petitioner’s application within a period of two weeks from date.
The petition is disposed of in the aforesaid terms.
Pending application is also disposed of.
VIBHU BAKHRU, J
SACHIN DATTA, J AUGUST 02, 2024/cl This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 13/08/2024 at 11:48:44
Reproduced from the public record of the Delhi High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.