M/S World Trade Park LTD. vs. Union Of INDIA

CW/2359/2024HC RajasthanGSTCNR RJHC02010936202424 January 2025Bench: AVNEESH JHINGAN,SHUBHA MEHTA3 pages

AI SummaryRemanded

Facts

The petitioner, M/s World Trade Park Ltd., filed a writ petition before the Rajasthan High Court. The core issue revolved around the inability to file an appeal before the GST Appellate Tribunal due to its non-functional status. The petitioner argued that the absence of a functional Tribunal prevented them from pursuing their statutory remedy. The respondents, including the Union of India and the State of Rajasthan, acknowledged the non-constitution of the Tribunal. The Court was considering a similar issue in other connected matters, and the parties agreed that the present petition was covered by a previous Division Bench decision in Jagdamba Motors vs. Union of India & Ors. The Court referred to a prior order in D.B. Civil Writ Petition No. 1113/2024, where a similar arrangement was made for a petitioner facing the same predicament.

Held

The Court held that the issue was covered by a previous Division Bench decision. Following the precedent set in D.B. Civil Writ Petition No. 1113/2024, the Court disposed of the present petition. The operative direction was that the petitioner should deposit the amount as per the provisions of Section 112(8) of the Rajasthan Goods and Services Tax Act, 2017, within three months from the date of the order. This deposit would ensure that further proceedings for the recovery of the balance amount would not be drawn. The petitioner was granted liberty to avail the statutory remedy of appeal within a period of three months from the date the Tribunal is constituted. The Court effectively provided a temporary reprieve from recovery proceedings, contingent on the petitioner making the prescribed deposit and subsequently filing an appeal once the Tribunal becomes functional.

Key Issues

1. Whether the petitioner can be granted relief by the High Court in its writ jurisdiction when the statutory appellate mechanism (GST Appellate Tribunal) is non-functional, and if so, what protection can be afforded to the petitioner pending the Tribunal's constitution, concerning Section 112(8) of the Rajasthan Goods and Services Tax Act, 2017. The petitioner contended that the non-functional status of the Tribunal renders the statutory appeal remedy unavailable, necessitating intervention by the High Court. They argued for a direction to protect them from recovery proceedings for the balance amount while preserving their right to appeal. The respondents acknowledged the non-constitution of the Tribunal and did not object to directions similar to those issued in previous cases, specifically referencing the protection available under Section 112(8) of the Act and a circular dated 23.03.2020.

Sections Cited

Section 112(8)

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

[2025:RJ-JP:3658-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Civil Writ Petition No. 2359/2024 M/s World Trade Park Ltd., A Company Incorporated Under The Provisions Of Companies Act, 1956 Having Its Registered Office At Flat No. 901-B, Mahalaxmi Heights, K.k. Road, Seren Cinema Lane, Mumbai And Having Its Corporate Office At 42, Lal Singh Judo Colony, Near Jaipuria Hospital, Tonk Road, Jaipur Acting Through Its Chairman And Managing Director Anoop Bartaria S/o Late Shri Virendra Bartaria Aged 53 Years R/o 61, Jai Jawan Colony, Scheme Iii, Durgapura, Tonk Road, Jaipur ----Petitioner Versus 1. Union Of India, Through Secretary, Finance Department, Government Of India, New Delhi 2. Gst Council, Through Its Chairman, Government Of India, New Delhi 3. Chief Commissioner, Central Goods And Services Tax, Statue Circle, C-Scheme, Jaipur 4. Commissioner, State Goods And Service Tax, Kar Bhawan, Ambedkar Circle, Jaipur 5. Deputy Commissioner (State Tax), Circle A, Enforcement Wing Iii, Jaipur, Rajasthan 6. Joint Commissioner, State Tax, Circle- A, Enforcement Wing Iii, Rajasthan, Jaipur 7. State Of Rajasthan, Through Additional Chief Secretary, Department Of Finance, Secretariat, Jaipur, Rajasthan. ----Respondents For Petitioner(s) : Mr. Swadeep Singh Hora For Respondent(s) : Mr. R.D. Rastogi, ASG with Mr. Devesh Yadav Mr. Sandeep Taneja, AAG with Mr. Kartikeya Sharma Mr. Kinshuk Jain HON'BLE MR. JUSTICE AVNEESH JHINGAN HON'BLE MRS. JUSTICE SHUBHA MEHTA

Order

[2025:RJ-JP:3658-DB] (2 of 3) [CW-2359/2024] 24/01/2025

Learned counsel for the parties are at ad idem that the issue involved in the present petition is covered by decision of Division Bench of this Court dated 27.11.2024, passed in D.B. Civil Writ Petition No.4740/2024 titled as Jagdamba Motors vs. Union of India & Ors. and connected matters.

Learned counsel for petitioner at this stage submits that the appeal against the order of First Appellate Court cannot be filed as the Tribunal is not functional.

Learned counsel for respondents submits that in similar matters, directions have been issued by this Court in D.B. Civil Writ Petition No.1113/2024 to which the counsel for the respondent has not raised any objection.

The order dated 15.02.2024 passed in D.B. Civil Writ Petition No.1113/2024 is reproduced below:- “1. 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).

[2025:RJ-JP:3658-DB] (3 of 3) [CW-2359/2024]

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 of three months from the date of the constitution of the Tribunal.”

The petition is disposed of in terms of order dated 15.02.2024 passed in D.B. Civil Writ Petition No.1113/2024. Let petitioner deposit the amount as per the provision of Section 112(8) of the Act within three months from today. (SHUBHA MEHTA),J (AVNEESH JHINGAN),J CHANDAN-DAKSH/32

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.