Facts of the Case

The petitioner, M/s Bharti Telemedia Ltd., a company operating through its authorised signatory and having its address in Raipur, Chhattisgarh, had filed WPT No.39 of 2022 before the High Court of Chhattisgarh, Bilaspur, challenging a demand notice dated 23rd November 2021 (Annexure P/12) issued by the Central GST authorities, seeking to question the proceedings initiated against it under the CGST Act, 2017. While the writ petition remained pending, the Assistant Commissioner, Central GST & Central Excise, Division No.IV, Raipur, passed an order dated 30th September 2023 dropping the very demand proceeding that was under challenge. With the underlying cause of action having disappeared, the matter was listed before a Single Judge on 18th October 2023.

Issues Involved

  1. Whether the writ petition survived for adjudication once the demand proceeding under challenge had itself been dropped by the department.
  2. Whether the petition ought to be dismissed as withdrawn/infructuous, with liberty to revive if the cause of action were to subsist again.

Petitioner's Arguments

  • Learned counsel for the petitioner submitted that since the demand proceeding initiated pursuant to the notice dated 23.11.2021 had been dropped by order dated 30.09.2023, nothing survived for adjudication and the petition had become infructuous.

Respondent's Arguments

  • Counsel for the Central GST respondents did not dispute that the demand proceeding stood dropped by the department's own order dated 30.09.2023.

Court Order/Findings

  • The Court accepted the petitioner's submission that the demand proceeding had been dropped by the department itself, rendering the challenge infructuous.
  • The Court held that the petition is dismissed as withdrawn, with liberty to revive the same if the cause of action subsists in future.

Important Clarification

Where the tax department itself drops the demand proceeding that is under challenge in a pending writ petition, the petition becomes infructuous and is properly dismissed as withdrawn, with liberty reserved to the assessee to revive the litigation should the department resurrect the same or a related demand.

Sections Involved

  • Demand and adjudication provisions under the Central Goods and Services Tax Act, 2017.
  • Article 226 of the Constitution of India.

Decision – In Favour of

This is not a decision on merits for either side. The petitioner's underlying grievance became moot because the department voluntarily dropped the demand notice, and the petition was accordingly dismissed as withdrawn/infructuous, with liberty reserved to revive if the cause of action resurfaces — a practical, non-adversarial resolution rather than a substantive win for the Assessee or the Department.

Related Case Laws

No directly on-point case notes are currently published on this site.

Case Details

  • Court: High Court of Chhattisgarh, Bilaspur
  • Case No.: WPT No. 39 of 2022
  • CNR: Not available
  • Coram: Justice Rakesh Mohan Pandey
  • Decision Date: 18-10-2023
  • Disposal Nature: Dismissed as withdrawn/infructuous after demand proceeding was dropped

Link to Download the Order

Download the full judgment (PDF)

Disclaimer

This content is shared strictly for general information and knowledge purposes only. Readers should independently verify the information from reliable sources. It is not intended to provide legal, professional, or advisory guidance. The author and the organisation disclaim all liability arising from the use of this content. The material has been prepared with the assistance of AI tools.