M/S. Shubh Laxmi Crane And Engineers vs. Union Of INDIA

Held

The Court held that the petitioner is entitled to relief due to the non-functional status of the GST Tribunal. Following the precedent set in D.B. Civil Writ Petition No.1113/2024, the Court directed that the petitioner deposit the amount as per the provisions of Section 112(8) of the Rajasthan Goods and Services Tax Act, 2017, within six weeks from the date of the order. This payment would prevent further proceedings for the recovery of the balance amount. The Court further held that in the eventuality of the petitioner filing an appeal within three months from the date of the constitution of the Tribunal, such appeal shall be considered to have been filed within the limitation period. The petitioner will be at liberty to request an early disposal of the appeal, which shall be considered in accordance with law. The Court did not expressly leave any issue undecided.

Facts

The petitioner, M/s. Shubh Laxmi Crane And Engineers, filed a writ petition before the Rajasthan High Court challenging orders dated 30.05.2025 and 16.11.2023. A primary grievance was that the petitioner was left without a remedy because the Goods and Services Tax Tribunal (GST) had not been functional since the implementation of GST in 2017. The petitioner relied on a previous order of the same court dated 15.02.2024, which dealt with a similar situation where the Tribunal was not constituted. In that prior case, the court had directed that the petitioner could file an appeal within a stipulated period from the date the Tribunal is constituted, provided certain payments were made as per Section 112(8) of the Rajasthan Goods and Services Tax Act, 2017.

Key Issues

1. Whether the petitioner is remediless due to the non-functional status of the GST Tribunal, and if so, what interim protection or procedural direction can be granted by the High Court, particularly in light of Section 112(8) of the Rajasthan Goods and Services Tax Act, 2017? The petitioner argued that the non-constitution of the GST Tribunal renders the statutory appellate remedy unavailable, leaving them without recourse. They relied on a previous order of the High Court in D.B. Civil Writ Petition No.1113/2024, which provided a mechanism for petitioners to file appeals within a period from the Tribunal's constitution, subject to making payments as per Section 112(8) of the Act. The petitioner agreed to this condition. The respondents (Union of India and State of Rajasthan) acknowledged that the Tribunal was not yet constituted and indicated that the process was ongoing. They consented to the petition being disposed of with appropriate protection under Section 112(8) of the Act, allowing the petitioner to file an appeal within a stipulated period from the Tribunal's constitution.