Facts of the Case

  • Petitioner Profile: The petitioner, M/s Sandeep Tiles, is a sole proprietorship concern represented by its proprietor, Mr. Deepak Sharma, operating out of Jodhpur, Rajasthan.
  • Litigation Background: The petitioner instituted a Division Bench Civil Writ Petition bearing registration number D.B. Civil Writ Petition No. 16581/2021 before the Jodhpur Bench of the High Court of Judicature for Rajasthan.
  • Respondents Impleaded: The writ impleaded multiple state and central entities including the Union of India (Ministry of Finance, Department of Revenue), The Goods and Services Tax Council (GST Council), Goods and Services Tax Network (GSTN), Central Board of Indirect Taxes and Customs (CBIC), and the jurisdictional Superintendent, Circle-F, Office of Central Goods and Services Tax, Jodhpur.
  • Procedural Stage: The matter was listed as a fresh case before the Division Bench, and no formal notices or summons had been issued to any of the named respondents yet.
  • Subsequent Action: The petitioner proactively filed an interlocutory application (Application No. 01/2022) formally requesting the High Court to permit the withdrawal of the pending writ petition.

Issues Involved

  • Whether a petitioner maintains an absolute or qualified right to unconditionally withdraw a fresh writ petition preferred under Article 226 of the Constitution of India before the court takes formal cognizance or issues notice to the opposing respondents.
  • Whether the court should allow Interlocutory Application No. 01/2022 and dismiss the main writ petition as withdrawn under the circumstances.

Petitioner’s Arguments

  • The learned counsel representing the petitioner, Mr. Vinay Jain, submitted before the Bench that the petitioner did not wish to pursue the litigation further at this stage.
  • Counsel formally prayed for the permission of the High Court to withdraw the main writ petition and requested the disposal of the accompanying withdrawal application (Application No. 01/2022) accordingly.

Respondent’s Arguments

  • As the matter was at a very primitive stage ("fresh matter") and notices had not yet been formally issued to the Union of India, the GST Council, CBIC, or the local GST superintendent, no physical appearance or counter-arguments were recorded on behalf of the respondents.

Court Findings & Final Order

  • Bench Composition: The matter was heard by a Division Bench comprising Hon'ble The Chief Justice Mr. Pankaj Mithal and Hon'ble Ms. Justice Rekha Borana.
  • Observation on Stage of Suit: The Hon'ble High Court explicitly observed that the matter was entirely fresh and noted that the court had not yet issued any notice or directions to the respondents.
  • Ruling on Withdrawal: Taking note of the stage of the litigation coupled with the voluntary application moved by the petitioner’s counsel, the Bench held that there was no legal impediment in permitting the withdrawal.
  • Final Disposition: The High Court allowed Application No. 01/2022 and formally dismissed D.B. Civil Writ Petition No. 16581/2021 as withdrawn.

Important Clarification

  • Precedential Value of Withdrawal Orders: When a writ petition is dismissed as withdrawn at a fresh stage without adjudication on the merits of the case, it does not lay down any binding legal precedent or law under Article 141/226. It simply signifies that the dispute between the parties was not judicially evaluated, leaving the statutory positions of the revenue authority intact.

Sections Involved

  • Statute: Central Goods and Services Tax (CGST) Act, 2017 / Rajasthan Goods and Services Tax (RGST) Act, 2017.
  • Constitutional Provision: Article 226 of the Constitution of India (under which the D.B. Civil Writ Petition was preferred).
  • Procedural Rule: Code of Civil Procedure, 1908 (Order XXIII Rule 1 relating to the withdrawal of suits/petitions).

Link to download the order – https://mytaxexpert.co.in/uploads/1783152988_820compressed.pdf

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