M/S Vedehi Construction LLP vs. Union Of INDIA
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The petitioner, M/s Vedehi Construction Llp, filed a writ petition before the Rajasthan High Court seeking to quash an order dated 11.11.2022 passed by the Appellate Authority. A significant grievance raised by the petitioner was that they were left remediless because the Goods and Services Tax Tribunal (GSTT) had not been functional since the implementation of GST in 2017. The petitioner's counsel agreed to dispose of the petition on the condition that the petitioner deposits the amount as per Section 112(8) of the Rajasthan Goods and Services Tax Act, 2017, and is granted liberty to file an appeal within a stipulated period from the constitution of the Tribunal.
Held
The Court disposed of the writ petition in terms similar to a previous case, Komal Marbles vs. State of Rajasthan & Ors. 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. Considering that the Tribunal was not functional, the Court held that if the petitioner files an appeal within three months from the date of the Tribunal's constitution, it shall be considered to have been filed within the limitation period. Thereafter, the petitioner would be at liberty to request an early disposal of the appeal, which would be considered expeditiously in accordance with law. The Court did not explicitly decide on the validity of the impugned order itself, focusing instead on providing a procedural remedy.
Key Issues
1. Whether the petitioner is remediless due to the non-functional status of the Goods and Services Tax Tribunal, thereby necessitating intervention by the High Court under its writ jurisdiction, particularly in light of Section 112(8) of the Rajasthan Goods and Services Tax Act, 2017? Petitioner's contention: The petitioner argued that the non-constitution of the GST Tribunal renders the statutory appellate remedy unavailable, leaving them without recourse. They sought protection and liberty to file an appeal once the Tribunal becomes functional. Respondents' contention: The respondents submitted that the Tribunal had not yet been constituted, but the process was ongoing. They proposed that the 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 Tribunal's constitution. They relied on a circular dated 23.03.2020 issued by the Government of Rajasthan, Finance Department (Tax Division).
Sections Cited
Section 112(8)
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Cause title — parties, addresses and appearances
Order 30/05/2025
The petition is filed seeking quashing of impugned order dated 11.11.2022 passed by the appellate authority.
One of the grievance raised is that the petitioner has been left remediless as the Goods and Service Tax Tribunal (for short
[2025:RJ-JP:22635-DB] (2 of 3) [CW-5373/2025] ‘the tribunal’) is not functional till date inspite of implementation of the GST in 2017. 3. This Court vide order dated 15.02.2024 has disposed of the case of Komal Marbles vs. State of Rajasthan & Ors. reported in [2024:RJ-JD:7895-DB] with the following directions:- “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 has 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, the 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 his submission, he places 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
[2025:RJ-JP:22635-DB] (3 of 3) [CW-5373/2025] petitioner avails statutory remedy of appeal within a period of three months from the date of the constitution of the Tribunal.”
The petition is disposed of in the same terms. Let the petitioner deposit the amount as per the provisions of Section 112(8) of the Act within six weeks from today.
Considering that as on date the tribunal is not functional, in the eventuality of the petitioner filing an appeal within three months from the date of constitution of the tribunal, the same shall be considered to have been filed within limitation. Thereafter, the petitioner shall be at liberty to make a request for early disposal of the appeal and the same shall be considered in accordance with law expeditiously. (ANAND SHARMA),J (AVNEESH JHINGAN),J Simple Kumawat /29
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.