Nice Telecommunication Private Limited vs. Assistant Commissioner

CW/5586/2024HC RajasthanGSTCNR RJHC02027954202430 May 2025Bench: AVNEESH JHINGAN,ANAND SHARMA (V. J.)3 pages

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Facts

The petitioner, Nice Telecommunication Private Limited, filed a writ petition before the Rajasthan High Court challenging an order dated 27.02.2024. A significant grievance raised by the petitioner was that the Goods and Services Tax Tribunal (GSTT) was not functional since the implementation of GST in 2017, leaving them without a remedy. The Court had previously dealt with a similar issue in D.B.Civil Writ Petition No.1113/2024 on 15.02.2024. In that prior case, the respondents had submitted that the Tribunal was not yet constituted, and the process was 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 in that case had agreed to this condition.

Held

The Court held that the petitioner is effectively remediless due to the non-functional status of the Goods and Services Tax Tribunal. Following the precedent set in D.B.Civil Writ Petition No.1113/2024, the Court directed that the petitioner 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 deposit would prevent 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 is at liberty to request an early disposal of the appeal, which shall be considered expeditiously in accordance with law. The Court did not decide on the merits of the impugned order itself, but rather provided a procedural pathway for the petitioner to pursue their appellate remedy once the Tribunal becomes functional.

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 procedural relief can be granted? (Question of law and procedure) Petitioner's arguments: The petitioner contended that the non-constitution of the GST Tribunal since 2017 effectively bars them from availing the statutory appellate remedy, rendering them remediless. They sought quashing of the impugned order and appropriate directions to address this procedural lacuna. Respondents' arguments: The respondents acknowledged that the Tribunal was not constituted. They argued that the petition should not be kept pending and proposed disposal with protection under Section 112(8) of the Rajasthan Goods and Services Tax Act, 2017. They relied on a circular dated 23.03.2020 issued by the Government of Rajasthan, Finance Department (Tax Division), to support their submission regarding the process of constitution and the availability of interim protection.

Sections Cited

Section 112(8)

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Cause title — parties, addresses and appearances

[2025:RJ-JP:22784-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Civil Writ Petition No. 5586/2024 Nice Telecommunication Private Limited, Through Its Director, Girish Sharma Son Of Badri Dutt Sharma Aged About 51, Resident Of 1-A, Keshav Nagar, Opposite Community Centre, Civil Lines, Jaipur, Rajasthan 302019. ----Petitioner Versus 1. Assistant Commissioner, Circle-I, Jaipur I, Ward - Ii, Circle - I, Jaipur I - Jaipur - I Rajasthan. 2. State Of Rajasthan, Through Its Additional Chief Secretary, Department Of Finance Secretariat, Jaipur, Rajasthan. 3. Appellate Authority Iiird, State Goods And Service Tax Department, Kar Bhawan, Ambedkar Circle, Jaipur. 4. Union Of India, Through Its Finance Secretary, Ministry Of Finance, Government Of India, New Delhi. ----Respondents For Petitioner(s) : Mr. DP Sharma with Mr. Mukund Sharma For Respondent(s) : Mr. Kapil Sharma with Ms. Ishika Kothari Ms. Kinjal Surana, AGC for Mr. Sandeep Taneja, AAG HON'BLE MR. JUSTICE AVNEESH JHINGAN HON'BLE MR. JUSTICE ANAND SHARMA

Order 30/05/2025

The petition is filed seeking quashing of impugned order dated 27.02.2024. 2. 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:22784-DB] (2 of 3) [CW-5586/2024] ‘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 D.B.Civil Writ Petition No.1113/2024 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 petitioner avails statutory remedy of appeal within a period

[2025:RJ-JP:22784-DB] (3 of 3) [CW-5586/2024] 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 Chandan/68

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.