M/S K.D. Enterprises vs. State Of Chhattisgarh

Facts

The petitioner, M/s K.D. Enterprises, filed a writ petition before the High Court of Chhattisgarh, Bilaspur. The petition challenged an order passed by Respondent No. 3, the Joint Commissioner, Chhattisgarh State Tax, Raipur Division, Raipur. This order imposed a penalty of Rs. 17,31,478/- on the petitioner. The petitioner's counsel submitted that the penalty amount has since been paid by the petitioner, and therefore, the present petition has become infructuous. The respondents' counsel had no objection to the petitioner's request to withdraw the petition.

Held

The Court held that the writ petition had become infructuous. This was based on the submission by the petitioner's counsel that the penalty amount of Rs. 17,31,478/-, which was the subject of the challenge, had already been paid by the petitioner. The respondents did not oppose this submission. Consequently, the Court allowed the petitioner to withdraw the petition with liberty to file a fresh petition if the occasion arises. The personal appearance of certain individuals, previously directed by the Court, was dispensed with. The petition was ultimately dismissed as withdrawn.

Key Issues

1. Whether the writ petition has become infructuous due to the payment of the penalty amount imposed by the Joint Commissioner, Chhattisgarh State Tax. Petitioner's Argument: The petitioner argued that the penalty of Rs. 17,31,478/-, imposed by Respondent No. 3, has been paid. Consequently, the purpose of filing the writ petition, which was to challenge this penalty, has been fulfilled, rendering the petition infructuous. Therefore, the petitioner sought permission to withdraw the petition with liberty to file a fresh one if necessary in the future. Respondents' Argument: The respondents, including the State of Chhattisgarh and the Central GST authorities, did not object to the petitioner's prayer for withdrawal of the petition.