M/S. Parnami Logistics INDIA PVT. LTD. vs. Union Of INDIA

Facts

The petitioner, M/s. Parnami Logistics India Pvt. Ltd., filed a writ petition before the Rajasthan High Court. The core of the dispute revolves around the inability to file an appeal against an order passed by the Appellate Authority due to the non-functional status of the GST Tribunal. The petitioner's counsel argued that the appeal cannot be filed as the Tribunal is not operational. The respondents, represented by the Union of India and the State of Rajasthan, acknowledged this situation and referred to previous orders by the High Court in similar matters. The case is being decided based on a prior Division Bench judgment in Jagdamba Motors vs. Union of India & Ors. and connected matters.

Held

The Court held that the issue is covered by a previous Division Bench decision and that the non-functional status of the GST Tribunal prevents the petitioner from filing a statutory appeal. Following the precedent set in D.B. Civil Writ Petition No.1113/2024, the Court directed that the petitioner should deposit the amount as per the provisions of Section 112(8) of the Rajasthan Goods and Services Tax Act, 2017. Further proceedings for the recovery of the balance amount shall not be drawn, provided the petitioner avails the statutory remedy of appeal within a period of three months from the date of the constitution of the Tribunal. The Court disposed of the petition in terms of the order passed in D.B. Civil Writ Petition No.1113/2024, granting liberty to the petitioner to file the appeal within the specified timeframe after the Tribunal becomes functional. The ratio decidendi is that in the absence of a functional appellate tribunal, courts can grant interim relief by directing deposit of a portion of the disputed amount and allowing the appeal to be filed within a period after the tribunal's constitution.

Key Issues

1. Whether the petitioner can be prevented from pursuing their statutory remedy of appeal due to the non-constitution and non-functional status of the GST Tribunal, and if so, what interim protection or directions should be granted? (Question of law and mixed law and fact, turning on the interpretation of provisions related to appeals and the functioning of the Tribunal). Petitioner's contention: The petitioner argued that they are unable to file an appeal against the order of the First Appellate Court because the GST Tribunal is not functional, thereby hindering their statutory right to appeal. Respondents' contention: The respondents acknowledged the non-functional status of the Tribunal. They submitted that in similar matters, the Court has issued directions, and they did not raise any objection to such directions. They relied on a circular dated 23.03.2020 issued by the Government of Rajasthan, Finance Department (Tax Division), and the provisions of Section 112(8) of the Rajasthan Goods and Services Tax Act, 2017, to support their submission that the petition may be disposed of with appropriate protection and liberty to file an appeal within a stipulated period from the Tribunal's constitution.