Authority Directed to Take Action Against Service Provider for Non-Payment of GST to Government Despite Receiving Payment | HC

Case Details: Metro Engineers vs. Union of India - [2025] 172 taxmann.com 171 (Delhi)

Judiciary and Counsel Details

• Jasmeet Singh, J.
• Ms Vaijanthi K., Adv. for the Petitioner.

Facts of the Case

The petitioner, a government contractor, filed the petition seeking a directive for the registration of an FIR against its service provider (R2) for non-payment of GST and other associated offences. The petitioner contended that despite having made the full payment to R2, including the applicable GST as per their contractual agreement, R2 failed to remit the GST to the Government of India. Consequently, the petitioner submitted a complaint before the concerned authority (R1) and later filed representations requesting a status update on the complaint and urging action against R2. However, no action had been taken by R1 as of the date of filing the petition, prompting the petitioner to seek judicial intervention.

High Court Held

The Hon’ble High Court held that R1 was obligated to consider the representations submitted by the petitioner and issue a speaking order within a period of two weeks. The court further directed that, if deemed appropriate, R1 may grant an opportunity of hearing to both the petitioner and R2 before passing the final order.