M/S Tanvi Enterprises vs. Union Of INDIA

CW/10686/2024HC RajasthanGSTCNR RJHC02054790202409 July 2024Bench: AVNEESH JHINGAN,ASHUTOSH KUMAR3 pages

AI SummaryRemanded

Facts

The petitioner, M/s Tanvi Enterprises, filed a writ petition before the Rajasthan High Court challenging an assessment order passed under the Rajasthan Goods and Services Tax Act. A primary grievance raised by the petitioner was the non-functional status of the GST Tribunal, despite the implementation of GST in 2017. The petitioner sought relief in light of this procedural impediment. The respondents, including the Union of India and the State of Rajasthan, acknowledged the non-constitution of the Tribunal and indicated that the process was ongoing. They proposed a resolution based on 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.

Held

The Court held that the writ petition could be disposed of with specific directions, acknowledging the non-constitution of the GST Tribunal. The Court directed that the petitioner deposit the amount as per the provisions contained in Sub-section (8) of Section 112 of the Rajasthan Goods and Services Tax Act, 2017, within three months from the date of the order. Upon compliance with this condition, further proceedings for the recovery of the balance amount shall not be drawn. The petitioner is granted liberty to avail the statutory remedy of appeal within a period of three months from the date of the constitution of the Tribunal. The Court disposed of the petition in terms of these directions, effectively providing interim protection to the petitioner while awaiting the operationalization of the appellate mechanism.

Key Issues

1. Whether the petitioner can be granted relief in the form of a stay on recovery proceedings for the balance amount of tax, given the non-functional status of the GST Tribunal, and if so, under which provision of law? Petitioner's argument: The petitioner's counsel agreed to the disposal of the petition on the condition proposed by the respondents, which involved making a payment as per Section 112(8) of the Act and being granted liberty to file an appeal within three months of the Tribunal's constitution. Respondents' argument: The respondents' counsel submitted that the Tribunal had not yet been constituted, and the process was ongoing. They proposed that the petition not be kept pending but 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 date the Tribunal is constituted. 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

[2024:RJ-JP:28506-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Civil Writ Petition No. 10686/2024 M/s Tanvi Enterprises, Khedapati Market, In Front Of Punjab National Bank, Samla Road Main Market Govindgarh, Alwar- 3016104 (Rajasthan) Through Its Proprietor Sh. Sanjeev Kumar S/o Sh. Subhash Sharma ----Petitioner Versus 1. Union Of India, Through Finance Secretary, Ministry Of Finance, Government Of India, New Delhi 2. The State Of Rajasthan, Through Chief Commissioner State Goods And Service Tax Kar Bhawan Ambedkar Circle Jaipur 3. The Principal Commissioner, The Principal Commissioner Central Goods And Services Tax, Statue Circle, C Scheme, Jaipur 4. The Superintendent, Central Goods And Services Tax Circle -C Ward Ii Alwar Rajasthan ----Respondents For Petitioner(s) : Mr. Pankaj Ghiya Mr. Mayank Vyas Ms. Paridhi Jain Mr. Nikhil Sharma For Respondent(s) : Mr. Sandeep Pathak Ms. Jaya P. Pathak HON'BLE MR. JUSTICE AVNEESH JHINGAN HON'BLE MR. JUSTICE ASHUTOSH KUMAR

Order 09/07/2024

This writ petition is filed aggrieved of dismissal of first Appeal challenging the assessment order passed under the Rajasthan Goods and Services Tax Act. One of the grievance raised is that

[2024:RJ-JP:28506-DB] (2 of 3) [CW-10686/2024] the Tribunal is not functional inspite of the implementation of the GST in 2017. 2. Learned counsel relies upon order dated 15.02.2024 passed by this Court while disposing of D.B. Civil Writ Petition No.1113/2024 with the following directions:- “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).

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

[2024:RJ-JP:28506-DB] (3 of 3) [CW-10686/2024] 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 the same terms. Let the petitioner deposit the amount as per the provision of Section 112(8) of the Act within three months from today.

The petition is disposed of accordingly. (ASHUTOSH KUMAR),J (AVNEESH JHINGAN),J simple Kumawat /10

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.