M/S. Kirar Brothers Trading Company vs. Union Of INDIA
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The petitioner, M/s. Kirar Brothers Trading Company, filed a writ petition before the Rajasthan High Court challenging orders dated 30.05.2024, 31.05.2024, and 28.11.2024. A primary grievance articulated by the petitioner was that they were left without a remedy because the Goods and Services Tax Tribunal (GSTT) had not become functional since the implementation of GST in 2017. The petitioner relied on a previous order of the same Court in D.B. Civil Writ Petition No.1113/2024, which addressed a similar issue regarding the non-functional status of the Tribunal.
Held
The Court held that the petitioner is entitled to relief due to the non-functional status of the GST 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. The Court further stipulated that in the event 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, which would be considered in accordance with law. The ratio decidendi is that when a statutory appellate forum is non-functional, the Court can provide interim measures to protect the rights of the litigant, including extending the period for filing appeals upon constitution of the Tribunal, provided the statutory pre-deposit is made.
Key Issues
1. Whether the petitioner is entitled to relief given the non-functional status of the Goods and Services Tax Tribunal, thereby preventing them from availing the statutory appellate remedy? (Question of law) Petitioner's contention: The petitioner argued that due to the non-operational status of the GST Tribunal, they are remediless. They placed reliance on a previous order of the High Court in D.B. Civil Writ Petition No.1113/2024, which provided a specific direction in similar circumstances. This order, in turn, relied on a circular dated 23.03.2020 issued by the Government of Rajasthan, Finance Department (Tax Division). Respondents' contention: The respondents, through their counsel, acknowledged that the Tribunal had not been constituted and the process was ongoing. They agreed to the disposal of the petition on the condition that the petitioner makes the payment 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 date the Tribunal is constituted.
Sections Cited
Section 112(8)
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Cause title — parties, addresses and appearances
Order 26/03/2025
The writ petition is filed seeking quashing of impugned orders dated 30.05.2024, 31.05.2024 & 28.11.2024. 2. One of the grievance raised is that the petitioner has been left remedyless 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:13639-DB] (2 of 3) [CW-3877/2025]
Learned counsel for the petitioner relies upon order dated 15.02.2024 passed by this Court while disposing 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:13639-DB] (3 of 3) [CW-3877/2025] 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. (MANEESH SHARMA),J (AVNEESH JHINGAN),J Monika/35
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.