M/S Arihant Marketing vs. State Of Rajasthan

Held

The Court held that the writ petitions should be disposed of in light of the adjudication made by a Division Bench in M/s. Shree Dev Narayan Marble v. State of Rajasthan & Ors. The Court accepted the joint submission of the parties. The respondents had submitted that the Tribunal was not yet constituted, but the process was ongoing. They proposed that the petition not be kept pending but disposed of with appropriate protection under Section 112(8) of the Rajasthan Goods and Services Tax Act, 2017, allowing the petitioner to file an appeal within a stipulated period from the Tribunal's constitution. The petitioner agreed to this condition. Accordingly, the Court directed that if the petitioner makes the payment as per Section 112(8) of the Act, further proceedings for recovery of the balance amount shall not be drawn, provided the petitioner avails the statutory remedy of appeal within three months from the date of the constitution of the Tribunal. The Court explicitly followed its earlier decision in M/s. Shree Dev Narayan Marble's case on the same terms.

Facts

The petitioners, M/s. Dharendra Kumar Salgiya and M/s Arihant Marketing, filed writ petitions before the Rajasthan High Court. The core issue in these petitions revolved around the pending constitution of the GST Tribunal. The respondents, including the Union of India and various state GST authorities, acknowledged that the Tribunal was not yet constituted, but the process was ongoing. They proposed that the writ petitions be disposed of with a specific protection under Section 112(8) of the Rajasthan Goods and Services Tax Act, 2017. This protection would allow petitioners to file their statutory appeals within a stipulated period from the date the Tribunal is constituted, provided they make the required payment as per the said sub-section. The petitioners agreed to this arrangement.

Key Issues

1. Whether the writ petitions should be kept pending due to the non-constitution of the GST Tribunal, or if they can be disposed of with appropriate protection for the petitioner's statutory remedy? (Mixed question of law and fact, concerning procedural remedies and statutory timelines). Petitioner's contention: The petitioners agreed to the disposal of their petitions on the condition that they would be granted liberty to file their appeals within a stipulated period from the date the Tribunal is constituted, provided they comply with the payment requirements of Section 112(8) of the Act. Revenue/State's contention: The respondents argued that since the Tribunal has not been constituted, the writ petitions should not be kept pending. They proposed that the petitions be disposed of with protection under Section 112(8) of the Rajasthan Goods and Services Tax Act, 2017, allowing the petitioner to file an appeal within a stipulated period from the Tribunal's constitution, relying on a circular dated 23.03.2020 issued by the Government of Rajasthan, Finance Department (Tax Division).