M/S Rana Trading Company vs. Joint Commissioner (Appeals) State Tax

Facts

The petitioner, M/s Rana Trading Company, through its Proprietor Javed Rana, filed a writ petition before the High Court of Chhattisgarh at Bilaspur. The petition challenged an order or action by the revenue authorities. The petitioner sought to withdraw the writ petition, citing a notification issued by the Ministry of Finance dated October 15, 2024, concerning a settlement scheme. This scheme apparently requires a statutory deposit of 20% of the disputed amount. The petitioner stated they had already made this deposit and wished to settle the matter with the Department.

Held

The Court allowed the petitioner's application for withdrawal of the writ petition. The reasoning was based on the petitioner's submission that they had complied with the requirements of a settlement notification dated October 15, 2024, by depositing 20% of the disputed amount. The petitioner expressed an inclination to settle the matter with the Department. Since the opposing counsel did not object to the withdrawal, the Court found no impediment to granting the request. The writ petition was accordingly dismissed as withdrawn. The associated interlocutory application (I.A. No.3/2025) was also disposed of.

Key Issues

1. Whether the petitioner is entitled to withdraw the writ petition in light of the settlement notification and having deposited the statutory amount. Petitioner's argument: The petitioner argued that a notification dated October 15, 2024, issued by the Ministry of Finance, provided for a settlement scheme. This scheme required a deposit of 20% of the disputed amount. The petitioner had complied with this requirement by depositing the statutory deposit and therefore sought permission to withdraw the writ petition to settle the matter with the Department. Revenue's argument: The counsel for the respondent (State) did not oppose the prayer for withdrawal.