M/S Reliance Chemotex Industries LTD. vs. Union Of INDIA
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M/s Reliance Chemotex Industries Ltd. filed writ petitions before the Rajasthan High Court challenging assessment orders passed under the Rajasthan Goods and Services Tax Act, 2017. A primary grievance was the non-functional status of the GST Tribunal, despite the implementation of GST in 2017. The petitioner relied on a previous order of the same court in D.B. Civil Writ Petition No. 1113/2024, which addressed a similar issue concerning the non-constitution of the Tribunal. The respondents acknowledged the ongoing process of Tribunal constitution and suggested 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 after the Tribunal's constitution. The petitioner agreed to this condition.
Held
The Court held that the writ petitions should be disposed of in terms similar to the previous order in D.B. Civil Writ Petition No. 1113/2024. The Court directed the petitioner to deposit the amount as per the provisions of Section 112(8) of the Rajasthan Goods and Services Tax Act, 2017, within three months from the date of the order. This deposit would ensure that further proceedings for the recovery of the balance amount are not drawn, provided the petitioner avails the statutory remedy of appeal within a period of three months from the date of the constitution of the Tribunal. The reasoning was based on the acknowledgment by the respondents that the Tribunal was not functional and the agreement of the parties to a conditional disposal. The ratio decidendi is that in the absence of a functional appellate tribunal, a taxpayer can seek protection from recovery of disputed amounts by complying with the pre-deposit requirements stipulated in the Act, with liberty to file an appeal once the tribunal is constituted.
Key Issues
1. Whether the petitioner is entitled to protection from recovery proceedings for the balance amount of tax, interest, or penalty, in light of the non-functional GST Tribunal, and if so, under what conditions? Petitioner's contention: The petitioner argued that the non-constitution of the GST Tribunal prevented them from availing the statutory remedy of appeal. They relied on the court's previous order in D.B. Civil Writ Petition No. 1113/2024, which provided a mechanism for such situations. They agreed to deposit the pre-requisite amount as per Section 112(8) of the Act to stay recovery of the balance. Revenue's contention: The respondents, represented by the Assistant Commissioner, Central Goods and Services Tax, acknowledged that the Tribunal was not yet constituted. They proposed that the writ petition be disposed of with liberty to the petitioner to file an appeal within a stipulated period from the date the Tribunal is constituted, provided the petitioner makes the payment as per Section 112(8) of the Rajasthan Goods and Services Tax Act, 2017. They placed reliance on a circular dated 23.03.2020 issued by the Government of Rajasthan, Finance Department (Tax Division).
Sections Cited
Section 112(8)
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Cause title — parties, addresses and appearances
Order 04/07/2024
These writ petitions are filed aggrieved of dismissal of first Appeal challenging the assessment order passed under the Rajasthan Goods and Services Tax Act, 2017 (for short ‘the Act’). One of the grievance raised is that 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
[2024:RJ-JP:27907-DB] (3 of 3) [CW-1679/2021] 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 petitions are 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 petitions are disposed of accordingly. (ASHUTOSH KUMAR),J (AVNEESH JHINGAN),J Monika/Aarzoo/54-55
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.