M/S Rmc Switchgears Limited vs. State Of Rajasthan

CW/103/2025HC RajasthanGSTCNR RJHC02110618202410 January 2025Bench: MANINDRA MOHAN SHRIVASTAVA,UMA SHANKER VYAS2 pages

AI SummaryRemanded

Facts

M/s RMC Switchgears Limited (the petitioner) filed a writ petition before the Rajasthan High Court. The respondents, the State of Rajasthan and the Union of India, were represented by their respective counsels. The matter was listed for admission but was disposed of finally with the consent of all parties. The core of the issue revolved around the non-constitution of the GST Tribunal. The respondents submitted that the Tribunal was not yet constituted, and the process was ongoing. They proposed that the petition be disposed of with a direction for the petitioner to file an appeal within a stipulated period from the date of the Tribunal's constitution, with appropriate protection under Section 112(8) of the Rajasthan Goods and Services Tax Act, 2017. The petitioner's counsel agreed to this proposal.

Held

The High Court, with the consent of both parties, disposed of the writ petition. The Court directed that if the petitioner makes the payment as stipulated in Sub-section (8) of Section 112 of the Rajasthan Goods and Services Tax Act, 2017, no further recovery proceedings for the balance amount shall be initiated. This relief is contingent upon the petitioner availing the statutory remedy of appeal within a period of three months from the date the GST Tribunal is constituted. The Court did not decide on the merits of the underlying GST dispute but provided a procedural mechanism for the petitioner to pursue their appeal once the appellate authority is functional. The specific amount in dispute was not recorded.

Key Issues

1. Whether the writ petition should be kept pending or disposed of in light of the non-constitution of the GST Tribunal, considering the provisions of Section 112(8) of the Rajasthan Goods and Services Tax Act, 2017? Petitioner's Argument: The petitioner agreed to the disposal of the petition on the condition proposed by the respondents, which involved availing the statutory remedy of appeal upon the constitution of the Tribunal. Respondents' Argument: The respondents argued that the Tribunal had not yet been constituted, and the process for its constitution was underway. They contended that the petition should not be kept pending but disposed of with protection under Section 112(8) of the Act, allowing the petitioner to file an appeal within a specified period from the Tribunal's constitution. They relied on a circular dated 23.03.2020 issued by the Government of Rajasthan, Finance Department (Tax Division).

Sections Cited

Section 112(8)

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

[2025:RJ-JP:1609-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D. B. Civil Writ Petition No. 103/2025 M/s RMC Switchgears Limited, Khotkawda Road, 7 Km From Chaksu, Village Badodiya, Tehsil Chaksu, Jaipur-Rajasthan- 303901 Through Its Chairman And Managing Director Shri Ashok Kumar Agarwal ----Petitioner Versus 1. State Of Rajasthan, Through Secretary Finance, Secretariat, Janpath, Jaipur-302015 2. Joint Commissioner, State Tax, Circle-A, Business Audit Wing-Iv, Rajasthan-Jaipur Kar Bhawan, Ambedkar Circle, Jaipur 3. Union Of India, Through Secretary Finance, Ministry Of Finance, North Block, New Delhi- 110001 ----Respondents For Petitioner : Mr. Sarvesh Jain Advocate. For Respondents : Ms. Kinjal Surana Advocate on behalf of Mr. Sandeep Taneja Additional Advocate General. Mr. Kapil Sharma Advocate through Video Conferencing. Ms. Ishika Kothari Advocate. HON'BLE THE CHIEF JUSTICE MR. MANINDRA MOHAN SHRIVASTAVA HON'BLE MR. JUSTICE UMA SHANKER VYAS

Order 10/01/2025

Ms. Kinjal Surana, associate of Mr. Sandeep Taneja, learned Additional Advocate General, on advance copy, enters appearance on behalf of Respondents No. 1 and 2. 2. Mr. Kapil Sharma, learned counsel enters appearance through video conferencing on behalf of Respondent No. 3. [2025:RJ-JP:1609-DB] (2 of 2) [CW-103/2025]

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 counsels for the respondents have 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, this 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 the submission, learned counsel placed 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 of three months from the date of the constitution of the Tribunal. (UMA SHANKER VYAS),J (MANINDRA MOHAN SHRIVASTAVA),CJ MANOJ NARWANI-GAURAV /9

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.