Dinodia Enterprises vs. Union Of INDIA & Ors.
Original PDF →Facts
The petitioner, Dinodia Enterprises, filed a writ petition before the Delhi High Court challenging an unspecified order or action by the revenue authorities. The core of the dispute involved a sum of Rs. 23,44,626/- that was manually deposited in a provisional GST number (07AQAPS7309C1Z0) of the petitioner. The petitioner sought to transfer this amount to another GST number (06AQAPS7309C1Z2) registered in Gurugram, Haryana, to discharge pending liabilities in that state. The High Court had previously made observations on March 2, 2022, prompting further action from the respondents. The respondents, after consulting the GST Policy Wing, CBIC, communicated on July 12, 2022, that no policy issue was involved and requested the transfer of the cash ledger amount.
Held
The Court held that the cash ledger amount of Rs. 23,44,626/- manually deposited in the provisional GST number of M/s Dinodia Enterprises (07AQAPS7309C1Z0) should be transferred to another GST number of the taxpayer (06AQAPS7309C1Z2) registered in Gurugram, Haryana. This decision was based on the communication received from the respondents on July 12, 2022, which confirmed that there was no policy issue involved and that the transfer was requested as per the High Court's earlier directions. The Court found the contents of this communication to be in line with the petitioner's prayer. The reasoning was that the respondents themselves acknowledged the lack of a policy impediment and proposed the transfer. The ratio decidendi is that when the revenue authorities confirm that a requested transfer of funds is administratively feasible and not barred by policy, and it aligns with the taxpayer's need to discharge liabilities, the High Court can direct such a transfer to resolve the dispute. The operative direction was to dispose of the writ petition in terms of the communication dated July 12, 2022, with the petitioner being directed to utilize the said amount for the purposes indicated in the communication. The writ petition was ordered to be closed.
Key Issues
1. Whether the cash ledger amount of Rs. 23,44,626/- manually deposited in the provisional GST number of M/s Dinodia Enterprises can be transferred to another GST number of the taxpayer registered in Gurugram, Haryana, to discharge pending liabilities in that state. The petitioner argued that the transfer of the cash ledger amount was necessary to discharge their pending liabilities in Haryana and that the communication from the respondents, agreeing to the transfer, aligned with their prayer in the writ petition. The respondents, through their counsel, submitted a communication dated July 12, 2022, stating that the matter was taken up with the GST Policy Wing, CBIC, and it was intimated that there was no policy issue involved. They requested that the cash ledger amount be transferred as per the directions of the High Court order dated March 2, 2022.
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Cause title — parties, addresses and appearances
O R D E R %
2022 [Physical Hearing/Hybrid Hearing (as per request)]
Ms Suhani Mathur, who appears for Mr Harpreet Singh, standing counsel, engaged on behalf of respondent nos.2, 3 & 5, has returned with instructions pursuant to the observations made by the coordinate bench in the order dated 02.03.2022. 2. Ms Mathur has placed on record a communication, which is dated 12.07.2022. Since the communication is brief, the relevant extract of the same is set forth hereafter:
“2. In this regard, it is stated that the matter was taken up with GST Policy Wing, CBIC and it has been intimated vide 1/2 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 26/06/2026 at 08:25:11
Board letter dated 11.07.2022 (copy enclosed) that there is no policy issue involved in this matter.
Therefore, as per direction of Hon’ble High Court order dated 02.03.2022, it is requested that the cash ledger amount of Rs.23,44,626/- manually deposited in provisional GST No. of M/s Dinodia Enterprises (07AQAPS7309C1Z0) may please be transferred to another GST No. of the taxpayer (06AQAPS7309C1Z2) registered in Gurugram, Haryana so that the taxpayer can discharge his pending liability in Haryana State GST registration in Gurugram.”
A hard copy of the said communication has been handed over to the counsel for the petitioner.
Counsel for the petitioner says that since the contents of the aforementioned communication are in line with the prayer made in the writ petition, the writ petition can be disposed of in terms of the said communication dated 12.07.2022. 3. 2. It is ordered accordingly.
For the purposes of good order and record, the Registry will scan and upload the aforementioned communication so that the same stands embedded with the case file.
Needless to add, the petitioner will utilize the said amount for the purposes indicated in the aforementioned communication.
The writ petition shall, accordingly, stand closed.
RAJIV SHAKDHER, J
TARA VITASTA GANJU, J
JULY 15, 2022/pmc
Click here to check corrigendum, if any 2/2 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 26/06/2026 at 08:25:11
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.