M/S Maheshwari Furniture House vs. Chief Commissioner State Goods And Service Tax

CW/3577/2021HC RajasthanGSTCNR RJHC02020779202124 March 2025Bench: AVNEESH JHINGAN,MANEESH SHARMA3 pages

AI SummaryRemanded

Facts

The petitioners, M/s Maheshwari Furniture House, filed writ petitions challenging two impugned orders dated 08.05.2019 and 20.01.2020. A significant grievance raised by the petitioners was the non-functionality of the Goods and Services Tax Tribunal (GSTT) despite the implementation of GST in 2017. The petitions were filed before the Rajasthan High Court at Jaipur. The respondents were the Chief Commissioner State Goods And Service Tax, the Appellate Authority, and the Assistant Commissioner, Anti Evasion, Rajasthan Goods and Services Tax Department.

Held

The Court decided to dispose of the writ petitions by relegating the petitioners to their statutory remedy of appeal. The Court acknowledged that the GST Tribunal was not functional as of the date of the order. Following the precedent set by a previous order of the Court in D.B. Civil Writ Petition No.16705/2024 and in line with the submissions of both parties, the Court directed that the petitioners must comply with the pre-deposit requirements for filing an appeal within six weeks from the date of the order. Furthermore, the Court held that if the petitioners file an appeal within three months of the constitution of the Tribunal, it shall be considered to have been filed within the limitation period. The Court also granted liberty to the petitioners to request an early disposal of their appeal, which shall be considered in accordance with the law. The operative direction is to allow the petitioners to pursue their statutory appeal under specific conditions.

Key Issues

1. Whether the non-constitution and non-functionality of the GST Tribunal, despite the implementation of GST, warrants the High Court to entertain a writ petition challenging orders that would ordinarily be appealable before the Tribunal, and if so, what interim protection or directions should be granted? (Mixed question of law and fact, concerning the procedural remedies available under the Rajasthan Goods and Services Tax Act, 2017, particularly Section 112). Petitioner's contention: The petitioner argued that due to the absence of a functional GST Tribunal, they are effectively denied their statutory right to appeal. They sought directions from the Court, relying on a previous order of the High Court and a circular dated 23.03.2020 issued by the Government of Rajasthan, Finance Department (Tax Division), to allow them to file an appeal within a stipulated period after the Tribunal's constitution, with appropriate protection regarding the balance amount. Respondent's contention: The respondent acknowledged that the Tribunal had not been constituted and that the process was ongoing. They agreed to the petition being disposed of with appropriate protection under Section 112(8) of the Rajasthan Goods and Services Tax Act, 2017, and liberty to file an appeal within the stipulated period from the date the Tribunal is constituted.

Sections Cited

Section 112

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

[2025:RJ-JP:13157-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Civil Writ Petition No. 3577/2021 M/s Maheshwari Furniture House, 135, Shopping Center Kota, Rajasthan Through Its Proprietor Naresh Kumar Somani S/o Chand Mal Somani. ----Petitioner Versus 1. Chief Commissioner State Goods And Service Tax, Kar Bhawan, Ambedkar Circle, Jaipur. 2. Appellate Authority, State Tax, State Tax Department, Ajmer, Camp- Kota. 3. Assistant Commissioner, Anti Evasion, Rajasthan Goods And Services Tax Department, Kota. ----Respondents Connected With D.B. Civil Writ Petition No. 3578/2021 M/s Maheshwari Furniture House, 135, Shopping Center Kota, Rajasthan Through Its Proprietor Naresh Kumar Somani S/o Chand Mal Somani. ----Petitioner Versus 1. Chief Commissioner, State Goods And Service Tax, Kar Bhawan, Ambedkar Circle, Jaipur. 2. Appellate Authority, State Tax, State Tax Department, Ajmer, Camp- Kota. 3. Assistant Commissioner, Anti Evasion, Rajasthan Goods And Services Tax Department, Kota. ----Respondents For Petitioner(s) : Ms. Paridhi Jain with Mr. Mayank Vyas on behalf of Mr. Pankaj Ghiya For Respondent(s) : Mr. Kartikeya Sharma on behalf of Mr. Sandeep Taneja, AAG HON'BLE MR. JUSTICE AVNEESH JHINGAN HON'BLE MR. JUSTICE MANEESH SHARMA [2025:RJ-JP:13157-DB] (2 of 3) [CW-3577/2021]

Order 24/03/2025

The writ petitions are filed seeking quashing of impugned orders dated 08.05.2019 and 20.01.2020. 2. One of the grievance raised is that the Goods and Service Tax Tribunal (for short ‘the Tribunal’) is not functional inspite of the implementation of the GST in 2017. 3. Learned counsel relies upon order dated 20.02.2025 passed by this Court while disposing of D.B. Civil Writ Petition No.16705/2024 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.

[2025:RJ-JP:13157-DB] (3 of 3) [CW-3577/2021]

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.”

Taking into account that the petitioners have remedy of appeal, the writ petitions are disposed of relegating the petitioners to the remedy of appeal. The petitioners shall comply with the requisite of pre-deposit for filing appeal within six weeks from today.

Considering that as on date the Tribunal is not functional, in the eventuality of the petitioners filing an appeal within three months of the constitution of the Tribunal, same shall be considered to have been filed within limitation. Thereafter, the petitioners 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 Seema/Chandan/52-53

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.