M/S Sms Limited vs. Commissioner Of State Tax

CW/4534/2026HC RajasthanGSTCNR RJHC02021954202620 April 2026Bench: INDERJEET SINGH,ASHOK KUMAR JAIN2 pages

AI SummaryRemanded

Facts

M/s Sms Limited (the petitioner) filed a writ petition before the Rajasthan High Court challenging an intimation for the amount recoverable under Section 79 of the GST Act, dated February 26, 2026. The respondents, including the Commissioner of State Tax and the Union of India, raised a preliminary objection that the writ petition was premature as the petitioner had a remedy to raise objections before departmental authorities. The petitioner argued that the department lacked the authority to issue the recovery notice because the relevant proceedings had elapsed. The Court heard both sides and considered their submissions.

Held

The Court disposed of the writ petition by granting liberty to the petitioner to raise all their legal objections before the departmental authority in response to the letter dated February 26, 2026. The concerned authority is directed to decide these objections through a reasoned and speaking order. This decision must include an examination of the issue of jurisdiction in issuing such orders. The Court's reasoning is based on the principle that alternative remedies should generally be exhausted before approaching the High Court through a writ petition, especially when the primary challenge involves factual disputes or procedural irregularities that can be addressed by the designated statutory authorities. The petitioner retains the liberty to file a fresh writ petition if they remain aggrieved by the order passed by the authority.

Key Issues

1. Whether the writ petition is maintainable in light of the availability of an alternative remedy before departmental authorities, and if so, whether the writ petition is premature? (Question of law). The petitioner contended that the department had no authority to issue the recovery notice as the proceedings had elapsed, implying a jurisdictional issue or a lapse in time-barring provisions. The respondents argued that the petitioner possessed a statutory remedy to raise all objections before the departmental authorities, making the writ petition premature and thus not maintainable at this stage.

Sections Cited

Section 79

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

[2026:RJ-JP:16621-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Civil Writ Petition No. 4534/2026 M/s Sms Limited, Having Its Principal Place Of Business At Mine Office, Khetri Copper Mine, Khetrinagar, Jhunjhunu, Rajasthan, 333504 through its Authorised Signatory - Mr. Yogendra Tiwari ----Petitioner Versus 1. Commissioner Of State Tax, Rajasthan Goods And Services Tax, Kar Bhawan, Ambedkar Circle, C-Scheme, Bhawani Singh Road, Jaipur 302015 2. The Joint Commissioner (State Tax), Circle Jhunjhnu, Kar Bhawan, Mandawa Mod, Jhunjhunu, Rajasthan, 333001 3. Union Of India, Through The Secretary, Ministry Of Finance, Department Of Revenue, New Delhi- 110 001. 4. The State Of Rajasthan Through The Secretary, Commercial Tax Department, Jaipur, Rajasthan. ----Respondents For Petitioner(s) : Ms. Priyadarshini Shekhawat Ms. Meetika Baghel Ms. Neha Sethi For Respondent(s) : Ms. Mahi Yadav, AAG with Mr. Rohan Mittal and Ms. Harshita Sharma Mr. Shyam Sharma HON'BLE MR. JUSTICE INDERJEET SINGH HON'BLE MR. JUSTICE ASHOK KUMAR JAIN

Order 20/04/2026 By way of this writ petition, the petitioner has challenged the intimation for the amount recoverable under Section 79 of the GST Act (order dated 26.02.2026). Learned Additional Advocate General raised a preliminary objection and submitted that the petitioner is having remedy to

[2026:RJ-JP:16621-DB] (2 of 2) [CW-4534/2026] raise all their objections before the departmental authorities and the writ petition is premature. Learned counsel for the petitioner submitted that the department has no authority to issue such recovery notice as the proceedings have elapsed. Heard and considered. We dispose of this writ petition by giving liberty to the petitioner to raise all their legal objections before the departmental authority in reply to the letter dated 26.02.2026 and the concerned authority shall decide the same by reasoned and speaking order including the issue of juri iction in issuing such orders and the petitioner would be at liberty to file fresh writ petition if feels aggrieved by the order of the authority so passed. (ASHOK KUMAR JAIN),J (INDERJEET SINGH),J DIKSHA /110

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.