Shiv Kripa Build Estate Private Limited vs. Union Of INDIA

CW/19602/2023HC RajasthanGSTCNR RJHC02099078202308 July 2024Bench: AVNEESH JHINGAN,ASHUTOSH KUMAR2 pages

AI SummaryRemanded

Facts

The petitioner, Shiv Kripa Build Estate Private Limited, filed a writ petition before the Rajasthan High Court at Jaipur. The petition challenged an assessment order passed under the Rajasthan Goods and Services Tax Act, and the subsequent dismissal of their first appeal. A significant grievance raised was the non-functional status of the GST Tribunal since the implementation of GST in 2017. During the pendency of the writ petition, the attachment of the petitioner's bank accounts was lifted, and the demand notice was recalled. The petitioner's counsel relied on a previous order of the High Court in a similar matter.

Held

The Court decided to dispose of the writ petition in terms of a previous order passed in a similar case. The petitioner was directed to deposit the amount as per the provisions of Section 112(8) of the Rajasthan Goods and Services Tax Act, 2017. Upon making this deposit, further proceedings for the recovery of the balance amount would not be drawn. The petitioner was granted liberty to avail the statutory remedy of appeal within a period of three months from the date the GST Tribunal is constituted. The reasoning was based on the consent of the parties and the acknowledgment that the Tribunal was not yet functional, necessitating a pragmatic approach to allow the petitioner to pursue their statutory remedy once available. The ratio decidendi is that in the absence of a functional appellate tribunal, High Courts can grant interim relief and extend the period for filing appeals, provided statutory pre-conditions like partial payment are met.

Key Issues

1. Whether the petitioner can be granted relief in the form of liberty to file an appeal before the GST Tribunal within a stipulated period from its constitution, given that the Tribunal is not functional. This issue turns on the interpretation and application of Section 112(8) of the Rajasthan Goods and Services Tax Act, 2017, and relevant circulars. The petitioner argued for the disposal of the petition with protection under Section 112(8) of the Act, allowing them to file an appeal within a specified time after the Tribunal's constitution. The respondents (Union of India and State of Rajasthan) agreed to this approach, acknowledging the ongoing process for Tribunal constitution and relying 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:28459-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Civil Writ Petition No.19602/2023 Shiv Kripa Build Estate Private Limited, Having Its Registered Address At 4Th Floor, Crystal Palm, 22 Godam Circle, Sardar Patel Marg Jaipur, Rajasthan Through Its Authorized Signatory And Director Nikhil Madan. ----Petitioner Versus 1. Union Of India, Through Secretary, Ministry Of Finance, No. 137, North Block, New Delhi-110001 2. State Of Rajasthan, Through Secretary, Department Of Finance , Secretariat, Janpath, Jaipur-302015, Rajasthan. 3. Deputy Commissioner State Tax, Circle I Jaipur Iii Jaipur , Commercial Tax Department , Jaipur Ncr Building Statue Circle, Jaipur. 4. Additional Commissioner (Appeals), Central Goods And Services Tax, Jaipur, NCR Building Statue Circle, Jaipur. 5. Assistant Commissioner, Central Goods And Service Tax Division-I, Jaipur. ----Respondents For Petitioner(s) : Mr. Siddharth Ranka For Respondent(s) : Mr. Sandeep Pathak Ms. Kinjal Surana, AGC HON'BLE MR. JUSTICE AVNEESH JHINGAN HON'BLE MR. JUSTICE ASHUTOSH KUMAR

Order 08/07/2024

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 the Tribunal is not functional inspite of the implementation of the GST in 2017. [2024:RJ-JP:28459-DB] (2 of 2) [CW-19602/2023]

Learned counsel for the petitioner submits that during pendency of the petition, the attachment of the bank accounts has been detached and demand notice has been recalled.

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 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 HS/TANISHA/168

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.