M/S Toyoda Gosei Minda INDIA PVT. LTD. vs. The Joint Commissioner

Facts

The petitioner, M/s Toyoda Gosei Minda India Pvt. Ltd., filed a writ petition before the Rajasthan High Court challenging a demand created under the Central Goods and Services Tax Act, 2017. A significant grievance raised by the petitioner was the non-functional status of the GST Tribunal, despite the implementation of GST in 2017. The petitioner relied on a previous order of the High Court dated February 15, 2024, which addressed a similar situation where the Tribunal was not constituted. In that prior case, the Court had directed that the petitioner could file an appeal within a stipulated period from the date the Tribunal is constituted, subject to making payment as per Section 112(8) of the Rajasthan Goods and Services Tax Act, 2017.

Held

The Court held that the writ petition should be disposed of in the same terms as the previous order dated February 15, 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. This direction was based on the understanding that the petitioner would avail the statutory remedy of appeal within a period of three months from the date of the constitution of the Tribunal. The reasoning was that in the absence of a functional Tribunal, and with the consent of the parties, the petition could be disposed of with appropriate protection under Section 112(8) of the Act, allowing for future appeal once the Tribunal is constituted. The ratio decidendi is that when a statutory appellate forum is non-functional, the High Court can provide interim relief by directing compliance with pre-deposit provisions and preserving the right to appeal upon the forum's establishment.

Key Issues

1. Whether the petitioner can be granted relief in the absence of a functional GST Tribunal, considering the statutory remedy of appeal is unavailable? (Question of law) Petitioner's contention: The petitioner argued that due to the non-constitution of the GST Tribunal, the statutory appellate remedy is not available, necessitating intervention by the High Court. They relied on a previous order of the Court dated February 15, 2024, which provided a mechanism for dealing with such situations. The petitioner agreed to the disposal of the petition on the condition of making payment as per Section 112(8) of the Act and availing the statutory remedy within three months of the Tribunal's constitution. Revenue's contention: The respondents, represented by the Additional Advocate General, submitted that the Tribunal had not been constituted, but the process was ongoing. They proposed that the petition should not be kept pending but disposed of with appropriate 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. They relied on a circular dated March 23, 2020, issued by the Government of Rajasthan, Finance Department (Tax Division).