M/S Prajapati Tubes Private Limited vs. Union Of INDIA

CW/15301/2025HC RajasthanGSTCNR RJHC02085649202528 January 20263 pages

AI SummaryPartly Allowed

Facts

The petitioner, M/s Prajapati Tubes Private Limited, filed a writ petition before the Rajasthan High Court challenging an order dated July 22, 2025. The respondents included various authorities from the Union of India and the State of Rajasthan, including the Deputy Commissioner, Circle-M, Jaipur-III, State Tax Department, and the Appellate Authority, State Tax, Jaipur-III. The petitioner had previously filed a reply to a show cause notice issued under Section 73 of the CGST Act, 2017, and adjudication had been completed. The core of the dispute appears to relate to the validity of a notification issued under Section 168A of the CGST Act, 2017, and Section 168 itself, which was under scrutiny before the Supreme Court.

Held

The Court held that the issue involved in the present writ petition is covered by the decision of a Coordinate Bench in Eagle Trans Shipping And Logistics India Private Limited v. Union of India & Ors. The Court noted that the petitioners had already filed a reply to the show cause notice and adjudication had been done. While the statutory remedy of appeal is available, the Court would not interfere with the impugned orders on merits. However, the question of the validity of the notification issued under Section 168A of the CGST Act, 2017, and Section 168 itself, is a subject matter of scrutiny before the Supreme Court. Therefore, the Court left it open to the petitioners to make submissions before the Apex Court or wait for its final adjudication. The validity of the impugned order concerning Section 168A would be governed by the Supreme Court's order. The Court accordingly quashed and set aside the impugned order dated July 22, 2025, and remanded the matter back to the appellate authority to be decided on merits on the same terms as laid down in the Eagle Trans Shipping case.

Key Issues

1. Whether the impugned order dated July 22, 2025, is valid, considering the ongoing challenge to Section 168A of the CGST Act, 2017, and Section 168 before the Supreme Court? (Question of law) Petitioner's contention: The petitioner argued that the issue involved in the writ petition is no longer res integra and is covered by a coordinate bench's decision in Eagle Trans Shipping And Logistics India Private Limited v. Union of India & Ors. (D.B. Civil Writ Petition No.16649/2024). This decision acknowledged the pendency of the validity of Section 168A before the Supreme Court. Revenue/State's contention: The judgment records no specific argument from the revenue or state regarding the issues raised by the petitioner. The court's decision was based on the joint submission of parties and the precedent established in the Eagle Trans Shipping case.

Sections Cited

Section 73, Section 107, Section 168, Section 168A

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

[2026:RJ-JP:3898-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Civil Writ Petition No. 15301/2025 M/s Prajapati Tubes Private Limited, Muhana Mandi, 60 Ft Road, Opp Gate No. 1, Muhana Road, Jaipur, Rajasthan, 302029 Through Its Director Mr. Naveen Prakash Tunwal, S/o Mr. Gopal Chand Tunwal, Aged About 45 Years, A-188, Dadu Dayal Nagar, Iscon Road, Mansarovar, Jaipur, Rajasthan, 302020. ----Petitioner Versus 1. Union Of India, Through The Secretary, Ministry Of Finance, Department Of Revenue, New Delhi. 2. Central Board Of Indirect Taxes And Customs, Department Of Revenue, Ministry Of Finance, Government Of India, Having Office At North Block, New Delhi Through Its Chairman. 3. The Chief Commissioner, Cgst, Jaipur Zone, Ncrb, Statue Circle, C-Scheme, Jaipur- 302005. 4. State Of Rajasthan Through The Finance Secretary (Revenue), Government Secretariat, Jaipur- 302005. 5. The Chief Commissioner, Commercial Tax Department, Kar Bhawan, Jaipur- 302004. 6. The Appellate Authority, State Tax, Jaipur-Iii, Kar Bhawan, Jaipur, Rajasthan. 7. The Deputy Commissioner, Circle-M, Jaipur-Iii, State Tax Department, Room No. 105, Ist Floor, Bsnl Building, Behind Nagar Nigam, Lalkothi, Jaipur, Rajasthan. ----Respondents For Petitioner(s) : Mr. Ravi Gupta, Adv. For Respondent(s) : Ms. Mahi Yadav, AAG with Mr. Kuldeep Singh Rathore, Adv. Mr. Rohan Mittal, Adv. Mr. Bharat Vyas, Sr. Adv. through VC Mr. Vedant Agarwal, Adv. HON'BLE DR. JUSTICE PUSHPENDRA SINGH BHATI HON'BLE MRS. JUSTICE SANGEETA SHARMA

Order

[2026:RJ-JP:3898-DB] (2 of 3) [CW-15301/2025] 28/01/2026

Learned counsel appearing for the respective parties jointly submit that the issue involved in the present writ petition is no more res-integra and stands covered by the decision rendered by a Coordinate Bench of this Hon'ble Court in Eagle Trans Shipping And Logistics India Private Limited v. Union of India & Ors. : D.B. Civil Writ Petition No.16649/2024 and other connected writ petitions decided on 22.08.2025. The said order dated 22.08.2025 is reproduced as hereunder:

On facts it is noticed that the petitioners have already filed a reply to the show cause notice issued under Section 73 of the CGST Act, 2017 and adjudication has already been done on the said aspects.

Keeping in view that the statutory remedy of appeal is available under Section 107 of the DGST Act, SGST Act as well as CGST Act, we would not interfere with the impugned orders, so far as the merits of the case are concerned. However, the question of validity of the notification issued under Section 168A of CGST Act, 2017 and provisions of Section 168 itself are a subject-matter of scrutiny before the Hon'ble Supreme Court in Special Leave to Appeal (C) No.4240/2025. 3. We therefore, leave it open to the petitioners to either make submissions if they so choose before the Apex Court or to wait for the final adjudication by the Apex Court. Of course, the validity of the impugned order with respect to the aspects of Section 168A of CGST Act, 2017 would be governed by the order passed by the Hon'ble Supreme Court. Our views are buttressed by the view, which has taken by the High Court of Delhi in its decision dated 05.05.2025 in W.P. (C) No.6290/2024 and CM Application No.26217/2024, we accordingly, leave it open to the petitioners to challenge the order on merit in appeal. If an appeal is preferred within a period of one month henceforth, the same shall be examined purely on merits without delving on the questions of limitation.

In view of the above, all the petitions are disposed of accordingly.

Pending application(s), if any, also stand disposed of."

In view of the legal position as reflected in the afore-quoted order, the instant writ petition is partly allowed, and accordingly, while quashing and setting aside the impugned order dated 22.07.2025, the matter is remanded back to the appellate

[2026:RJ-JP:3898-DB] (3 of 3) [CW-15301/2025] authority, which shall be decided on merits on the same terms as laid down in Eagle Trans Shipping (supra). All pending applications, if any, stand disposed of. (SANGEETA SHARMA),J (DR. PUSHPENDRA SINGH BHATI),J Sudheer/HEENA/131

Reproduced from the public record of the Rajasthan High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.