M/S Mahira Industry vs. Union Of INDIA

/10639/2024HC RajasthanGSTCNR RJHC02054866202409 July 2024Bench: MAHENDAR KUMAR GOYAL3 pages

AI SummaryRemanded

Facts

The petitioner, M/s Mahira Industry, filed a writ petition before the Rajasthan High Court at Jaipur. The petition was filed aggrieved by the dismissal of its first appeal, which challenged an assessment order passed under the Rajasthan Goods and Services Tax Act. A significant grievance raised by the petitioner was the non-functional status of the GST Tribunal, despite the implementation of GST in 2017. The petitioner sought relief from the High Court due to this procedural impediment. The respondents, including the Union of India and the State of Rajasthan, acknowledged the non-constitution of the Tribunal.

Held

The Court held that the petitioner could avail the statutory remedy of appeal, subject to certain conditions, given the non-functional status of the GST Tribunal. Following the consent of the parties and relying on a previous order of the Court in D.B. Civil Writ Petition No.1113/2024, the Court directed that the petitioner must make payment as per the provisions contained in Sub-section (8) of Section 112 of the Rajasthan Goods and Services Tax Act, 2017. Upon compliance with this condition, further proceedings for the recovery of the balance amount would not be drawn. The petitioner was granted liberty to file their statutory appeal within a period of three months from the date of the constitution of the Tribunal. The Court disposed of the writ petition on these terms. The issue of the assessment order itself was not decided on merits.

Key Issues

1. Whether the petitioner can avail statutory remedy of appeal when the GST Tribunal is not functional, and if so, under what conditions? (Section 112(8) of the Rajasthan Goods and Services Tax Act, 2017). Petitioner's Contention: The petitioner argued that due to the non-functional status of the Tribunal, they are unable to pursue their statutory remedy of appeal. They relied on the fact that the Tribunal has not been constituted since the implementation of GST in 2017. Respondents' Contention: The respondents conceded that the Tribunal has not been constituted and the process is ongoing. They agreed to dispose of the petition 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. They also placed reliance on a circular dated 23.03.2020 issued by the Government of Rajasthan, Finance Department (Tax Division).

Sections Cited

Section 112(8)

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

[2024:RJ-JP:28504-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Civil Writ Petition No. 10639/2024 M/s Mahira Industry, Ward No. 10, Govindgarh, Alwar-3016004 (Rajasthan). Through Its Proprietor, Mr. Rohit Khandelwal S/o Sh Yogesh ----Petitioner Versus 1. Union Of India, Through Finance Secretary Ministry Of Finance Government Of India New Delhi. 2. The State Of Rajasthan, Through Chief Commissioner State Goods And Service Tax, Kar Bhawan, Ambedkar Circle, Jaipur. 3. The Principal Commissioner, Central Goods And Services Tax, Statue Circle, C Scheme, Jaipur. 4. The Superintendent, Cgst, Range-Vi, Division-B, Alwar. ----Respondents For Petitioner(s) : Mr. Pankaj Ghiya Mr. Mayank Vyas Ms. Paridhi Jain Mr. Nikhil Sharma For Respondent(s) : Mr. Sandeep Pathak Ms. Jaya P. Pathak HON'BLE MR. JUSTICE AVNEESH JHINGAN HON'BLE MR. JUSTICE ASHUTOSH KUMAR

Order 09/07/2024

This writ petition is filed aggrieved of dismissal of first Appeal challenging the assessment order passed under the Rajasthan Goods and Services Tax Act. One of the grievance raised is that the Tribunal is not functional inspite of the implementation of the GST in 2017. [2024:RJ-JP:28504-DB] (2 of 3) [CW-10639/2024]

Learned counsel relies upon order dated 15.02.2024 passed by this Court while disposing of D.B. Civil Writ Petition No.1113/2024 with the following directions:- “Though the matter comes up for admission today, with the consent of the parties, the petition is being disposed of finally. At the outset, learned counsel for the respondents has submitted that at present the Tribunal has not been constituted and the process towards constitution of the Tribunal is going on, therefore, in these circumstances, the petition may not be kept pending but with appropriate protection available under Section 112(8) of the Rajasthan Goods and Services Tax, 2017 (for short ‘the Act’), this petition may be disposed off with liberty to the petitioner to file appeal within stipulated period from the date the Tribunal is constituted. In support of his submission, he places reliance upon a circular dated 23.03.2020 issued by Government of Rajasthan Finance Department (Tax Division).

Learned counsel for the petitioner agrees to the disposal of the petition on the aforesaid condition.

Accordingly, this petition, at this stage, is disposed off with a direction that in case petitioner makes payment as per provisions contained in Sub-section (8) of Section 112 of the Act, further proceedings shall not be drawn for recovery of the balance amount, provided that the petitioner avails statutory remedy of appeal within a period

[2024:RJ-JP:28504-DB] (3 of 3) [CW-10639/2024] of three months from the date of the constitution of the Tribunal.”

The petition is disposed of in the same terms. Let the petitioner deposit the amount as per the provision of Section 112(8) of the Act within three months from today.

The petition is disposed of accordingly. (ASHUTOSH KUMAR),J (AVNEESH JHINGAN),J Simple Kumawat /09

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.