M/S Rajasthan Khadi Sangh vs. State Of Rajasthan

Held

The Court disposed of the writ petition. It 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 shall be initiated for the balance amount. 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 accepted the proposal made by the respondents and agreed to by the petitioner, acknowledging the current situation of the Tribunal's non-constitution. The ratio decidendi is that in the absence of a functional appellate tribunal, courts may grant interim protection and direct parties to pursue statutory remedies once the tribunal is established, provided certain conditions regarding pre-deposit are met.

Facts

The petitioner, M/s Rajasthan Khadi Sangh, through its Secretary, filed a writ petition before the Rajasthan High Court. The respondents are the State of Rajasthan and the Union of India. The petition was listed for admission. However, with the consent of all parties, the matter was disposed of finally. The respondents' counsel submitted that the GST Tribunal has not yet been constituted, and the process is ongoing. They proposed that the writ petition be disposed of with 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. This submission was supported by a circular dated 23.03.2020 from the Government of Rajasthan, Finance Department (Tax Division). The petitioner's counsel agreed to this proposal.

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 since the Tribunal is not yet constituted, the writ petition should not be kept pending. They proposed disposing of the petition with appropriate protection under Section 112(8) of the Act, allowing the petitioner to file an appeal within a stipulated period from the date the Tribunal is constituted. They relied on a circular dated 23.03.2020 issued by the Government of Rajasthan, Finance Department (Tax Division).