M/S Sinex Vision vs. Commissioner, Central Excise And CGST

Facts

This writ petition was filed by M/s Sinex Vision, represented by its proprietor, against the Commissioner, Central Excise and CGST, Jaipur. The petitioner is aggrieved by the dismissal of their first appeal, which challenged an assessment order passed under the Rajasthan Goods and Services Tax Act. A primary grievance raised by the petitioner is the non-functional status of the GST Tribunal since the implementation of GST in 2017. The petitioner's counsel relied on a previous order of the High Court dated February 15, 2024, which addressed a similar situation where the Tribunal was not constituted. The respondent's counsel acknowledged the ongoing process of Tribunal constitution and suggested disposing of the petition with protection under Section 112(8) of the Act, allowing the petitioner to file an appeal within a stipulated period after the Tribunal's constitution. The petitioner agreed to this condition.

Held

The Court disposed of the writ petition in terms similar to a previous order dated February 15, 2024. The Court directed that in case 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 the recovery of the balance amount shall not be drawn. This relief is contingent upon the petitioner availing the statutory remedy of appeal within a period of three months from the date of the constitution of the Tribunal. The Court also directed the petitioner to deposit the amount as per Section 112(8) of the Act within two months from the date of the order. The primary reasoning was to provide interim protection to the petitioner while acknowledging the unavailability of the statutory appellate forum and the ongoing efforts to constitute it. The Court effectively granted liberty to the petitioner to pursue their statutory remedy once it becomes available, subject to compliance with the pre-deposit requirement.

Key Issues

1. Whether the petitioner can be granted relief in a writ petition when the statutory appellate remedy is unavailable due to the non-constitution of the GST Tribunal, and if so, what protection should be afforded pending the Tribunal's establishment? (Mixed question of law and fact, turning on Section 112(8) of the Rajasthan Goods and Services Tax Act, 2017). Petitioner's Contention: The petitioner argued that the non-functional status of the Tribunal prevents them from availing the statutory remedy of appeal. They relied on a previous High Court order that provided a mechanism for similar situations. Respondent's Contention: The respondent acknowledged that the Tribunal was not yet constituted and the process was ongoing. They proposed that the writ petition be disposed of with protection under Section 112(8) of the Act, allowing the petitioner to file an appeal within a specified period from the date the Tribunal is constituted. They also placed reliance on a circular dated March 23, 2020, issued by the Government of Rajasthan, Finance Department (Tax Division).