M/S. Vasudha Venture vs. Union Of INDIA

CW/6528/2024HC RajasthanGSTCNR RJHC02033137202401 July 2024Bench: AVNEESH JHINGAN,ASHUTOSH KUMAR3 pages

AI SummaryRemanded

Facts

The petitioner, M/s. Vasudha Venture, filed a writ petition before the Rajasthan High Court at Jaipur. The petition challenged an assessment order passed under the Rajasthan Goods and Services Tax Act, and the subsequent dismissal of their first appeal. A primary 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 in light of this procedural impediment. The respondents acknowledged the non-constitution of the Tribunal and indicated that the process was ongoing.

Held

The Court disposed of the writ petition in terms similar to a previous order in D.B. Civil Writ Petition No.1113/2024. The Court directed that if the petitioner makes the payment as per the provisions contained in Sub-section (8) of Section 112 of the Rajasthan Goods and Services Tax Act, 2017, further proceedings for recovery of the balance amount shall not be drawn. The petitioner was granted liberty to avail the statutory remedy of appeal within a period of three months from the date the Tribunal is constituted. The Court noted that the petitioner agreed to this condition. The operative direction was for the petitioner to deposit the amount as per Section 112(8) within three months from the date of the order.

Key Issues

1. Whether the petitioner can be granted relief by the High Court in a writ petition when the statutory appellate tribunal is not functional, and if so, what protection is available under the Rajasthan Goods and Services Tax Act, 2017? The petitioner argued that due to the non-constitution of the Tribunal, they are unable to avail the statutory remedy of appeal. They relied on a circular dated 23.03.2020 issued by the Government of Rajasthan, Finance Department (Tax Division), and the directions given in a previous writ petition (D.B. Civil Writ Petition No.1113/2024) by the same Court. The respondents, while not disputing the non-functional status of the Tribunal, submitted that the petition should not be kept pending and suggested that appropriate protection under Section 112(8) of the Act could be provided, allowing the petitioner to file an appeal within a stipulated period from the Tribunal's constitution.

Sections Cited

Section 112(8)

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

[2024:RJ-JP:26924-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Civil Writ Petition No. 6528/2024 M/s. Vasudha Venture, A-50/51, Shopping Centre, Subhash Nagar, Jaipur- 302016 (Raj). Through Its Authorized Signatory Nirmal Kumar Jain S/o Sh. Manik Chand ----Petitioner Versus 1. Union Of India, Through Secretary, Finance Department, 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 Chief Commissioner, Central Goods And Services Tax, Statue Circle, C Scheme, Jaipur 4. Deputy Commissioner Cgst, Division- B, Jaipur ----Respondents For Petitioner(s) : Mr. Pankaj Ghiya Mr. Mayank Vyas For Respondent(s) : Mr. Ajay Shukla, Sr. Standing counsel with Mr. Raghav Sharma HON'BLE MR. JUSTICE AVNEESH JHINGAN HON'BLE MR. JUSTICE ASHUTOSH KUMAR

Order 01/07/2024

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:26924-DB] (2 of 3) [CW-6528/2024]

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:26924-DB] (3 of 3) [CW-6528/2024] 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 /Riya/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.