M/S Rajasthan Khadi Sangh vs. State Of Rajasthan

Held

The Court decided to dispose of the writ petition with a specific direction. It held that if the petitioner complies with the payment provisions 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 respondents' submission that the petition should not be kept pending due to the ongoing process of Tribunal constitution and provided a mechanism for the petitioner to pursue their statutory remedy once the Tribunal is functional. The reasoning is based on providing a practical solution to the petitioner's grievance in the absence of the appellate forum.

Facts

The petitioner, M/s Rajasthan Khadi Sangh, through its Secretary, filed a writ petition before the Rajasthan High Court. The respondents included the State of Rajasthan and the Union of India. The petition was listed for admission, but with the consent of both parties, it was disposed of finally. The core issue revolved around the non-constitution of the GST Tribunal and the petitioner's inability to file an appeal. The respondents suggested disposing of the petition 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 after the Tribunal's constitution. The petitioner agreed to this arrangement.

Key Issues

1. Whether the writ petition should be kept pending due to the non-constitution of the GST Tribunal, or 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? Petitioner's Contention: The petitioner agreed to the disposal of the petition on the condition proposed by the respondents. Respondents' Contention: The respondents argued that since the Tribunal has not yet been constituted and the process is ongoing, the writ petition should not be kept pending. Instead, it should be disposed of with protection under Section 112(8) of the Act, enabling the petitioner to file an appeal within a specified timeframe 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).