M/S. Vijay Laxmi Trading Company vs. Union Of INDIA

Held

The Court held that, in light of the non-functional status of the GST Tribunal, the writ petition could be disposed of in terms of the previous order dated February 15, 2024, in D.B. Civil Writ Petition No. 1113/2024. The Court directed the petitioner to deposit the amount as per the provisions of Section 112(8) of the Rajasthan Goods and Services Tax Act, 2017, within six weeks from the date of the order. This payment would prevent further recovery proceedings for the balance amount. The Court further stipulated that if the petitioner files an appeal within three months from the date of the constitution of the Tribunal, it shall be considered to have been filed within the limitation period. The petitioner was also granted liberty to request an early disposal of the appeal once filed, which would be considered in accordance with law. The Court explicitly followed its earlier decision in D.B. Civil Writ Petition No. 12539/2025.

Facts

M/s. Vijay Laxmi Trading Company (the petitioner) filed a writ petition before the Rajasthan High Court challenging certain orders. The primary grievance raised by the petitioner was that they were left without a remedy as the Goods and Services Tax Tribunal (GSTT) was not functional since the implementation of GST in 2017. The petitioner relied on a previous order of the High Court dated February 15, 2024, passed in D.B. Civil Writ Petition No. 1113/2024, which addressed a similar issue. The respondents, including the Union of India and the State of Rajasthan, accepted notice. All parties agreed that the current petition could be disposed of based on the principles laid down in the prior High Court order.

Key Issues

1. Whether the petitioner is remediless due to the non-functional status of the Goods and Services Tax Tribunal, and if so, what interim protection or directions can be granted by the High Court? (Question of law and mixed fact and law, concerning the availability of statutory remedies under the GST regime). Petitioner's Contention: The petitioner argued that the non-constitution of the GST Tribunal since 2017 has rendered them without a statutory appellate remedy, leaving them remediless. They relied on the High Court's previous order in D.B. Civil Writ Petition No. 1113/2024, which provided a mechanism for disposal of such petitions. Respondents' Contention: The respondents acknowledged that the Tribunal was not yet constituted but indicated that the process was ongoing. They agreed to the disposal of the petition based on the conditions stipulated in the previous High Court order, which involved making a payment as per Section 112(8) of the Rajasthan Goods and Services Tax Act, 2017, and liberty to file an appeal within a stipulated period after the Tribunal's constitution.