M/S Asian Traders vs. Principal Commissioner Of Department Of Trade And Taxes, Government Of Nct Of Delhi

Facts

Three separate contempt petitions were filed by M/s JVN Traders Pvt. Ltd., M/s Asian Traders, and M/s Friends Media Add Company 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. The petitioners alleged willful disobedience of previous High Court judgments dated April 22, 2024 (in W.P.(C) 5491/2024), April 16, 2024 (in W.P.(C) 5378/2024), and February 12, 2024 (in W.P.(C) 1260/2024). These prior judgments had directed the cancellation of the petitioners' GST registrations within four weeks, as they had closed their businesses. The contempt petitions were filed to seek compliance with these directions.

Held

The Court noted that the petitioners were absent and no one appeared on their behalf. In one of the contempt petitions (CONT.CAS(C) 971/2024), the counsel for the respondent stated that the GST registration of the petitioner had already been cancelled and the directions of the previous judgments were complied with. Based on the absence of the petitioners in the other two contempt petitions (CONT.CAS(C) 969/2024 and CONT.CAS(C) 972/2024), the Court presumed that the directions of the Division Bench had also been complied with, and the GST registrations of those petitioners had been cancelled. Consequently, the Court disposed of all three contempt petitions as satisfied. Liberty was granted to the petitioners to revive the petitions if their grievances still persisted.

Key Issues

1. Whether the respondents have willfully disobeyed the directions issued by the Division Bench in the judgments dated April 22, 2024, April 16, 2024, and February 12, 2024, which mandated the cancellation of the petitioners' GST registrations within four weeks due to business closure? Petitioner's argument: The petitioners, by filing contempt petitions, contended that the respondents had failed to comply with the court's previous orders regarding the cancellation of their GST registrations, thereby constituting willful disobedience. Respondent's argument: In CONT.CAS(C) 971/2024, the counsel for the respondent submitted 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 two petitions, due to the absence of the petitioners, it was presumed that compliance had been made.