M/S Rajasthan Electronics And Instruments Limited vs. Assistant Commissioner Jurisdiction CGST Division-G

CW/9330/2024HC RajasthanGSTCNR RJHC02048073202431 May 2024Bench: MANINDRA MOHAN SHRIVASTAVA,BHUWAN GOYAL2 pages

AI SummaryRemanded

Facts

M/s Rajasthan Electronics And Instruments Limited (the petitioner) filed a writ petition before the Rajasthan High Court. The respondents, including the Assistant Commissioner CGST and the State of Rajasthan, appeared. The matter was taken up for final disposal with the consent of the parties. The respondents submitted that the GST Tribunal has not yet been constituted, and the process is ongoing. They proposed that the petition 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. The petitioner agreed to this proposal. The court noted reliance on a circular dated 23.03.2020 by the Government of Rajasthan, Finance Department (Tax Division).

Held

The Court disposed of the writ petition with a specific direction. It held that if the petitioner makes the payment as stipulated under Sub-section (8) of Section 112 of the Rajasthan Goods and Services Tax Act, 2017, no further recovery proceedings for the balance amount shall be initiated. This is contingent upon the petitioner availing the statutory remedy of appeal within a period of three months from the date the GST Tribunal is constituted. The court accepted the respondents' submission regarding the non-constitution of the Tribunal and the procedural recourse available. The reasoning is based on providing a practical solution in the interim period before the appellate tribunal becomes functional, ensuring the petitioner can pursue their statutory rights without immediate recovery pressure, provided they comply with the pre-deposit requirements.

Key Issues

1. Whether the writ petition should be entertained and kept pending given the non-constitution of the GST Tribunal, or if it should be disposed of with liberty to file an appeal upon the Tribunal's constitution? (Question of procedure and statutory remedy) Petitioner's Contention: The petitioner agreed to the disposal of the petition on the condition proposed by the respondents. Respondents' Contention: The respondents argued that since the Tribunal is not yet constituted, the writ petition should not be kept pending. Instead, it should 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 specified period from the date the Tribunal is constituted. They relied 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:26315-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D. B. Civil Writ Petition No. 9330/2024 M/s Rajasthan Electronics And Instruments Limited, Having Registered Office At 2, Kanakpura Industrial Area, Sirsi Road, Jaipur-302012 (Rajasthan) Through Suja Ram Nirmal, Addl. General Manager, Reil Age 53 Years S/o Late Shri M.r. Nirmal ----Petitioner Versus 1. Assistant Commissioner Jurisdiction Cgst Division-G, Jaipur Central Excise Building, Sector-10, Vidhyadhar Nagar, Jaipur, Rajasthan 2. State Of Rajasthan, Through Its Additional Chief Secretary, Department Of Finance Secretariat Jaipur, Rajasthan. 3. Joint Commissioner (Appeals) Central Goods And Service Tax Department, Jaipur, New Central Revenue Building, Statue Circle, C-Scheme, Jaipur-302005. 4. Union Of India, Through Its Finance Secretary, Ministry Of Finance, Government Of India, New Delhi. ----Respondents For Petitioner : Mr. DP Sharma Advocate with Ms. Heena Sharma Advocate. For Respondents : Mr. Sandeep Pathak Advocate. Mr. Bharat Vyas, Additional Advocate General assisted by Ms. Pratyushi Mehta Advocate. HON'BLE THE CHIEF JUSTICE MR. MANINDRA MOHAN SHRIVASTAVA HON'BLE MR. JUSTICE BHUWAN GOYAL

Order 31/05/2024

Mr. Sandeep Pathak, learned counsel appears on behalf of respondent Nos. 1, 3 & 4. 2. Mr. Bharat Vyas, learned Additional Advocate General appears on behalf of respondent No.2. [2024:RJ-JP:26315-DB] (2 of 2) [CW-9330/2024]

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 have 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, this 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 their submission, learned counsel for the respondents placed 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 of three months from the date of the constitution of the Tribunal. (BHUWAN GOYAL),J (MANINDRA MOHAN SHRIVASTAVA),CJ SANJAY KUMAWAT-RAHUL/37

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.