M/S. Shri Balaji Agro Industries vs. Union Of INDIA

CW/7996/2025HC RajasthanGSTCNR RJHC02043804202527 May 2025Bench: AVNEESH JHINGAN,MUKESH RAJPUROHIT (V. J.)3 pages

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Facts

The petitioner, M/s. Shri Balaji Agro Industries, filed a writ petition before the Rajasthan High Court challenging an order dated 11.11.2024. A primary grievance was that the Goods and Services Tax Tribunal (GSTT) was not functional since the implementation of GST in 2017, leaving the petitioner without a remedy. The Court had previously disposed of a similar writ petition (D.B.Civil Writ Petition No.1113/2024) on 15.02.2024. In that prior instance, the respondents had submitted that the Tribunal was not yet constituted and proposed that the petitioner be granted protection under Section 112(8) of the Rajasthan Goods and Services Tax Act, 2017, with liberty to file an appeal within a stipulated period from the Tribunal's constitution. The petitioner had agreed to this condition.

Held

The Court held that the petitioner is indeed facing a situation where the statutory appellate remedy is unavailable due to the non-functional GST Tribunal. Following the precedent set in its earlier order dated 15.02.2024 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. The Court further clarified that in the event the petitioner files an appeal within three months from the date of the constitution of the Tribunal, such appeal shall be considered to have been filed within the limitation period. The petitioner was also granted liberty to request early disposal of the appeal, which would be considered expeditiously in accordance with law. The Court did not expressly leave any issue undecided.

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 relief can be granted? (Question of law) Petitioner's contention: The petitioner argued that the non-constitution of the GST Tribunal since 2017 effectively bars them from availing their statutory appellate remedy, rendering them remediless. They sought a direction from the Court to address this procedural lacuna. Respondents' contention: The respondents acknowledged the non-constitution of the Tribunal. They proposed that the petitioner be allowed to deposit the pre-deposit amount as stipulated under Section 112(8) of the Rajasthan Goods and Services Tax Act, 2017. They also 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 potential interim measures.

Sections Cited

Section 112(8)

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Cause title — parties, addresses and appearances

[2025:RJ-JP:22163-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Civil Writ Petition No. 7996/2025 M/s. Shri Balaji Agro Industries, Sikari Road, Nayana, Govindgarh, Alwar - 301604 Through Its Partner Mr. Ashok Kumar Gupta S/o Shri Bhavani Ram Gupta ----Petitioner Versus 1. Union Of India, Through Finance Secretary, Ministry Of Finance, Government Of India, New Delhi 2. The State Of Rajasthan, Through Chief Commissioner State Goods And Service Tax, Kar Bhawan, Ambedkar Circle, Jaipur 3. The Principal Commissioner, Central Goods And Services Tax, Statue Circle, C Scheme, Jaipur 4. The Deputy Commissioner, State Tax, Circle- C, Alwar ----Respondents For Petitioner(s) : Ms.Paridhi Jain for Mr.Pankaj Ghiya For Respondent(s) : Mr.Sandeep Pathak Mr.Kartikeya Sharma for Mr.Sandeep Taneja, AAG HON'BLE MR. JUSTICE AVNEESH JHINGAN HON'BLE MR. JUSTICE MUKESH RAJPUROHIT

Order 27/05/2025

The petition is filed seeking quashing of impugned order dated 11.11.2024. 2. One of the grievance raised is that the petitioner has been left remediless as the Goods and Service Tax Tribunal (for short ‘the tribunal’) is not functional till date inspite of implementation of the GST in 2017. [2025:RJ-JP:22163-DB] (2 of 3) [CW-7996/2025]

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 of three months from the date of the constitution of the Tribunal.”

[2025:RJ-JP:22163-DB] (3 of 3) [CW-7996/2025]

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. (MUKESH RAJPUROHIT),J (AVNEESH JHINGAN),J Monika/17

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.