M/S Friends Media Add Company vs. Principal Commissioner Of Goods And Service Tax, West Delhi

Facts

The petitioners, M/s JVN Traders Pvt. Ltd., M/s Asian Traders, and M/s Friends Media Add Company, filed contempt petitions alleging willful disobedience of previous High Court judgments. These judgments, passed in W.P.(C) 5491/2024, W.P.(C) 5378/2024, and W.P.(C) 1260/2024, had directed the cancellation of the petitioners' GST registrations within four weeks, as they had closed their businesses. The contempt petitions were filed against the Principal Commissioner of Department of Trade and Taxes, Government of NCT of Delhi, and the Principal Commissioner of Goods and Service Tax, West Delhi.

Held

The Court noted that no appearance was made on behalf of the petitioners in any of the contempt petitions. For CONT.CAS(C) 971/2024, the respondent's counsel stated that the GST registration of the petitioner had already been cancelled, and the previous judgment's directions were complied with. Presuming compliance for the other contempt petitions (CONT.CAS(C) 969/2024 and CONT.CAS(C) 972/2024) due to the petitioners' absence, the Court disposed of all petitions as satisfied. The reasoning is based on the submission of compliance by the respondent and the lack of any grievance being pressed by the petitioners. The ratio decidendi is that if a respondent claims compliance and the petitioner does not appear to contest, the contempt proceedings are deemed satisfied. Liberty was granted to the petitioners to revive the petitions if their grievance persisted.

Key Issues

1. Whether the respondents have willfully disobeyed the directions issued by the Division Bench in the previous writ petitions concerning the cancellation of GST registrations? Petitioner's contention: The petitioners allege willful disobedience of the court's prior orders directing the cancellation of their GST registrations. They have approached the court through contempt petitions to enforce compliance. Respondent's contention: In CONT.CAS(C) 971/2024, the learned counsel for the respondent submits that the GST registration of the petitioner has already been cancelled, and the directions passed in the aforesaid judgments have been complied with. For the other contempt petitions, due to the absence of the petitioners, it is presumed that the directions have also been complied with and GST registrations cancelled.