M/S. Hanuman Cotton Ginning And Pressing Factory vs. Union Of INDIA

CW/6932/2025HC RajasthanGSTCNR RJHC02030624202507 May 2025Bench: MANINDRA MOHAN SHRIVASTAVA,MUKESH RAJPUROHIT3 pages

AI SummaryRemanded

Facts

The petitioner, M/s. Hanuman Cotton Ginning and Pressing Factory, challenged an order dated 31.08.2023 concerning the Financial Year 2017-18. The petition also initially included challenges to orders for Financial Years 2018-19 and 2019-20. The respondents, including the Union of India and the State of Rajasthan authorities, submitted that the GST Tribunal had not yet been constituted. They proposed disposing of the writ petition 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 agreed to this proposal. The Court also granted liberty to the petitioner to file separate writ petitions for the other financial years.

Held

The Court disposed of the writ petition with a direction that the petitioner could make payment as per the provisions of Sub-section (8) of Section 112 of the Rajasthan Goods and Services Tax Act, 2017. Upon such payment, further proceedings for recovery of the balance amount would not be drawn. This relief is contingent upon the petitioner availing the statutory remedy of appeal within a period of three months from the date of the constitution of the GST Tribunal. The Court also granted the petitioner liberty to file separate writ petitions to challenge the orders dated 31.08.2023 passed in respect of Financial Years 2018-19 and 2019-20. The reasoning was based on the agreement of the parties and the pendency of the Tribunal's constitution, providing a procedural pathway for the petitioner to pursue their grievance.

Key Issues

1. Whether the writ petition should be disposed of with liberty to the petitioner to file an appeal before the GST Tribunal upon its constitution, considering the pendency of the Tribunal's establishment and the availability of statutory protection under Section 112(8) of the Rajasthan Goods and Services Tax Act, 2017? Petitioner's Argument: The petitioner agreed to the disposal of the writ petition on the condition proposed by the respondents, which involved availing the statutory remedy of appeal upon the constitution of the Tribunal and making payment as per Section 112(8) of the Act. Respondents' Argument: The respondents argued that since the Tribunal was not yet constituted, the writ petition should not be kept pending. They proposed disposing of the petition with appropriate protection under Section 112(8) of the Act, allowing the petitioner to file an appeal within a stipulated 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)

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

[2025:RJ-JP:19212-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D. B. Civil Writ Petition No. 6932/2025 M/s. Hanuman Cotton Ginning and Pressing Factory, Ramgarh Road Village-Chatarpur, Govindgarh, Alwar- 301604 through its Authorized Partner Mr. Phool Chand Bansal S/o Hukam Chand Bansal ----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 Chief Commissioner, Central Goods and Services Tax, Statue Circle, C-Scheme, Jaipur 4. Deputy Commissioner of State Tax, Circle-C, H.K.M. Nagar, Kar Bhawan, Alwar, Rajasthan ----Respondents For Petitioner : Ms. Paridhi Jain Advocate with Mr. Mayank Vyas Advocate. For Respondents : Mr. Kartikey Sharma Advocate on behalf of Mr. Sandeep Taneja, Additional Advocate General. Mr. Raghav Sharma Advocate on behalf of Mr. Ajay Shukla Advocate. HON'BLE THE CHIEF JUSTICE MR. MANINDRA MOHAN SHRIVASTAVA HON'BLE MR. JUSTICE MUKESH RAJPUROHIT

Order 07/05/2025

Heard.

Mr. Kartikey Sharma associate of Mr. Sandeep Taneja, learned Additional Advocate General enters appearance on behalf of Respondents No. 2 to 4. [2025:RJ-JP:19212-DB] (2 of 3) [CW-6932/2025]

Mr. Raghav Sharma associate of Mr. Ajay Shukla, learned counsel enters appearance on behalf of Respondent No. 1. 4. As multiple causes of action have been clubbed together in this petition, at the request of learned counsel for the petitioner, this petition will survive only in the matter of challenge to order dated 31.08.2023 passed in respect of Financial Year 2017-18. 5. Though the matter comes up for admission today, with the consent of the parties, the petition is being disposed off finally.

At the outset, learned counsel for the respondents have 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, this petition may not be kept pending but with appropriate protection available under Section 112(8) of the Rajasthan Goods and Services Tax Act, 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 the submission, learned counsel placed 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

[2025:RJ-JP:19212-DB] (3 of 3) [CW-6932/2025] appeal within a period of three months from the date of the constitution of the Tribunal.

Petitioner is granted liberty to file separate writ petitions to challenge orders dated 31.08.2023 passed in respect of Financial Years 2018-19 and 2019-20. (MUKESH RAJPUROHIT),J (MANINDRA MOHAN SHRIVASTAVA),CJ MANOJ NARWANI-GARIMA/44

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.