M/S Bharat Kirana Bhandar vs. State Of Rajasthan

Facts

The petitioner, M/s Bharat Kirana Bhandar, filed a writ petition before the Rajasthan High Court. The petitioner's grievance stems from an order passed by an authority, which is not explicitly detailed in the provided text, but it is understood to be an order against which an appeal would typically lie to the GST Tribunal. The petitioner argued that an appeal cannot be filed because the Tribunal is not functional. The respondents, including the State of Rajasthan and the Union of India, agreed that the issue is covered by a previous Division Bench decision and referred to directions issued in similar matters.

Held

The Court held that the petition is disposed of in terms of the order passed in D.B. Civil Writ Petition No. 1113/2024. The reasoning is based on the consensus among the parties and the established practice in similar cases where the Tribunal is non-functional. The Court directed the petitioner to deposit the amount as per the provisions of Section 112(8) of the Rajasthan Goods and Services Tax Act, 2017, within three months from the date of the order. This implies that the petitioner is granted protection from recovery of the balance amount upon making the prescribed deposit, with the liberty to file an appeal within three months from the date the Tribunal is constituted. The ratio decidendi is that in the absence of a functional Tribunal, the Court can provide interim relief by allowing deposit of a portion of the disputed amount as per statutory provisions, enabling the assessee to pursue their remedy once the appellate forum is established.

Key Issues

1. Whether the petitioner can file an appeal against the order of the First Appellate Court when the GST Tribunal is not functional, as per Section 112(8) of the Rajasthan Goods and Services Tax Act, 2017? Petitioner's Contention: The petitioner argued that an appeal against the order of the First Appellate Court cannot be filed because the Tribunal is not functional. They relied on the general understanding that statutory appeals require a functional appellate forum. Respondents' Contention: The respondents submitted that in similar matters, directions have been issued by the Court. They referred to a previous order in D.B. Civil Writ Petition No. 1113/2024, where a similar issue was addressed. They also placed reliance on a circular dated 23.03.2020 issued by the Government of Rajasthan Finance Department (Tax Division).