M/S Sanmati Exim Private Limited vs. Deputy Director

CW/6077/2024HC RajasthanGSTCNR RJHC02030008202406 January 2025Bench: MANINDRA MOHAN SHRIVASTAVA,UMA SHANKER VYAS2 pages

AI SummaryRemanded

Facts

M/s Sanmati Exim Private Limited, the petitioner, filed a writ petition before the Rajasthan High Court. The respondents included various GST authorities, including the Deputy Director of GST Intelligence and the Deputy Commissioner of Central GST. The petition was filed due to the non-constitution of the GST Tribunal. The petitioner sought protection against recovery proceedings for the balance amount of tax, interest, penalty, or late fee, pending the constitution of the Tribunal. The respondents, acknowledging the non-constitution of the Tribunal, proposed a disposal of the petition with liberty to the petitioner to file an appeal within a stipulated period from the Tribunal's constitution, subject to compliance with Section 112(8) of the Rajasthan Goods and Services Tax Act, 2017. The petitioner agreed to this proposal.

Held

The Court held that the writ petition should be disposed of at this stage. The Court directed that if the petitioner makes the payment as per the provisions contained in Sub-section (8) of Section 112 of the Rajasthan Goods and Services Tax Act, 2017, further proceedings for recovery of the balance amount shall not be drawn. This relief is contingent upon the petitioner availing the statutory remedy of appeal within a period of three months from the date of the constitution of the Tribunal. The Court accepted the consensus between the parties, acknowledging the current non-availability of the appellate tribunal and providing a procedural mechanism for the petitioner to pursue their statutory rights once the tribunal is functional. The reasoning is based on providing interim protection and a clear path for appeal, aligning with the intent of the statutory provisions and the circular relied upon.

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 Contention: The petitioner agreed to the proposal for disposal of the writ petition on the condition that appropriate protection would be available under Section 112(8) of the Act, allowing them to file an appeal within a stipulated period from the date the Tribunal is constituted. Respondents' Contention: The respondents argued that the Tribunal has not yet been constituted, and the process is ongoing. Therefore, the petition should not be kept pending but disposed of with appropriate protection under Section 112(8) of the Act. They relied on a circular dated 23.03.2020 issued by the Government of Rajasthan, Finance Department (Tax Division), to support their submission. They proposed that the petition be disposed of with liberty to the petitioner to file an appeal within a stipulated period from the Tribunal's constitution.

Sections Cited

Section 112(8)

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

[2025:RJ-JP:519-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D. B. Civil Writ Petition No. 6077/2024 M/s Sanmati Exim Private Limited, F-632-634, Riico Industrial Area, Khushkhera, Bhiwadi, Distt - Alwar Rajasthan 301707, Through Its Director, Nitin Gupta Having Din 01067201. ----Petitioner Versus 1. Deputy Director, Directorate General Of Goods And Service Tax Intelligence, Jaipur Zonal Unit, C-62, Sarojini Marg, C- Scheme, Jaipur - 302001. 2. The Deputy Commissioner, Central Goods And Service Tax Division - D Alwar By Pass Road Bhiwadi. 3. The Joint Commissioner (Appeals), Central Goods And Service Tax, Ncrb Statue Circle Jaipur- 302005. 4. State Of Rajasthan, Finance Department (Tax Division) 1St Floor Main Building, Gate 2, Government Secretariat Jaipur, Rajasthan 302005 Through Its Joint Secretary (Tax). 5. The Union Of India, Ministry Of Finance, Department Of Revenue, Room No. 46, North Block, New Delhi - 110001, Through Its Secretary. ----Respondents For Petitioner : Mr. Prateek Kedawat Advocate with Mr. Saajan Saini, Advocate For Respondents : Mr. Harish Tripathi Advocate. Mr. Sandeep Taneja Additional Advocate General with Ms. Kinjal Surana Advocate. HON'BLE THE CHIEF JUSTICE MR. MANINDRA MOHAN SHRIVASTAVA HON'BLE MR. JUSTICE UMA SHANKER VYAS

Order 06/01/2025

Mr. Harish Tripathi, learned counsel enters appearance and takes notice on behalf of Respondents No. 1 to 3 and 5. 2. Mr. Sandeep Taneja, learned Additional Advocate General enters appearance and takes notice on behalf of Respondents No.

[2025:RJ-JP:519-DB] (2 of 2) [CW-6077/2024]

Copy of petition be supplied to learned counsel for the respondents today itself.

Though the matter comes up for admission today, with the consent of the parties, the petition is being disposed off 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 Act, 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 counsels 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-YOGESH /11

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.