Shree Nath Agencies vs. Appellate Authority-I, Rajasthan Goods And Service Tax Department
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The petitioner, Shree Nath Agencies, filed a writ petition before the Rajasthan High Court seeking to quash an order dated 16.04.2021 passed by the Appellate Authority-I, Rajasthan Goods and Service Tax Department. The petitioner's primary grievance was that they were left without a remedy because the Goods and Services Tax Tribunal was not functional. During the pendency of the writ petition, the petitioner's goods and vehicle were released upon furnishing a bank guarantee and depositing 10% of the disputed amount. The petitioner relied on a previous order of the High Court dated 15.02.2024, which dealt with a similar issue concerning the non-functional Tribunal.
Held
The Court disposed of the writ petition in terms similar to a previous order dated 15.02.2024. 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 directed that the petitioner shall avail the statutory remedy of appeal within a period of three months from the date of the constitution of the Tribunal. This approach provides the petitioner with a pathway to pursue their statutory remedy once the Tribunal becomes functional, while ensuring a partial financial commitment as per the Act. The Court did not explicitly address the prayer to quash the order of the Appellate Authority, instead focusing on facilitating the appeal process.
Key Issues
1. Whether the petitioner is entitled to relief from the High Court given the non-functional status of the Goods and Services Tax Tribunal, and if so, what form should this relief take, particularly in light of Section 112(8) of the Rajasthan Goods and Services Tax Act, 2017? Petitioner's Argument: The petitioner argued that due to the absence of a functional Tribunal, they were left without a statutory remedy and sought quashing of the appellate authority's order. They relied on a previous High Court order that allowed petitioners to file appeals within a stipulated period from the Tribunal's constitution, provided they made the payment as per Section 112(8) of the Act. Respondent's Argument: The respondents (Appellate Authority and State Tax Officer) acknowledged that the Tribunal was not constituted but indicated that the process was ongoing. They agreed to the disposal of the petition on the condition that the petitioner would be allowed to file an appeal within a stipulated period from the Tribunal's constitution, subject to compliance with Section 112(8) of the Act. They also referred to a circular dated 23.03.2020 issued by the Government of Rajasthan Finance Department.
Sections Cited
Section 112(8)
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Cause title — parties, addresses and appearances
Order 18/02/2025
The prayer in the present petition is to quash the order dated 16.04.2021 passed by the First Appellate Authority.
The grievance is that the petitioner has been left remedy- less as the Tribunal under the Goods and Service Tax Act is not functional till date.
Learned counsel for the petitioner submits that during pendency of the petition, goods and vehicle have been released on submission of the bank guarantee and deposit of 10% amount.
[2025:RJ-JP:7088-DB] (2 of 3) [CW-6566/2021]
Learned counsel 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:7088-DB] (3 of 3) [CW-6566/2021] 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 provision of Section 112(8) of the Act within six weeks from today. The petitioner shall avail statutory remedy of appeal within a period of three months from the date of constitution of the Tribunal.
The petition is disposed of accordingly. (ASHUTOSH KUMAR),J (AVNEESH JHINGAN),J Simple Kumawat /33
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.