M/S Reliance Chemotex Industries LTD. vs. Union Of INDIA

CW/1679/2021HC RajasthanGSTCNR RJHC02009388202104 July 2024Bench: AVNEESH JHINGAN,ASHUTOSH KUMAR3 pages

AI SummaryRemanded

Facts

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 concerning a similar issue. The respondents, including the Union of India and various GST authorities, acknowledged that the Tribunal had not yet been constituted. The court considered a circular dated 23.03.2020 issued by the Government of Rajasthan, Finance Department (Tax Division), in conjunction with the provisions for appeal under Section 112(8) of the Act.

Held

The Court held that the writ petitions could be disposed of based on the consent of the parties and the previous order of the Court dated 15.02.2024. The Court directed that if the petitioner deposits the amount as per the provisions of Section 112(8) of the Rajasthan Goods and Services Tax Act, 2017, further proceedings for the recovery of the balance amount shall not be drawn. The petitioner was 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 did not expressly leave any issue undecided, as the matter was resolved by consent and application of the cited provision and previous order.

Key Issues

1. Whether the petitioner can be granted relief in the absence of a functional GST Tribunal, considering the statutory appeal mechanism is unavailable? 2. What protection is available to the petitioner under Section 112(8) of the Rajasthan Goods and Services Tax Act, 2017, in light of the non-constitution of the Tribunal? Petitioner's Argument: The petitioner argued that due to the non-functional Tribunal, they are unable to avail the statutory remedy of appeal. They sought protection against further recovery proceedings for the balance amount, referencing a previous order of the Court and a circular from the Rajasthan Finance Department. Revenue/State's Argument: The respondents conceded that the Tribunal had not been constituted. They agreed to the disposal of the petition on the condition that the petitioner makes payment as per Section 112(8) of the Act and is granted liberty to file an appeal within a stipulated period from the Tribunal's constitution.

Sections Cited

Section 112(8)

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

[2024:RJ-JP:27907-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Civil Writ Petition No. 1679/2021 M/s Reliance Chemotex Industries Ltd., Post Box No. 73,vill. Kanpur, udaipur (Raj.) Through Its Authorized Signatory Mr. Anupam Tiwari S/o Mr. V.n. Tiwari Aged 47 Years, (Manager Legal ) Resident Of 37, Sector 4, Udaipur (Raj.) ----Petitioner Versus 1. Union Of India, Through Secretary, Finance Department, Government Of India, New Delhi 2. The Chief Commissioner, Central Goods And Services Tax, Statue Circle, C Scheme, Jaipur 3. The Commissioner, State Goods And Service Tax Kar Bhawan, Ambedkar Circle, Jaipur 4. The Assistant Commissioner, Central Goods And Services Tax, Lic Building, Near Reti Stand Division-B, Udaipur- 313002 ----Respondents Connected With D.B. Civil Writ Petition No. 1678/2021 M/s Reliance Chemotex Industries Ltd., Post Box No. 73, Vill. Kanpur, udaipur (Raj.) Through Its Authorized Signatory Mr. Anupam Tiwari S/o Mr. V.n. Tiwari Aged 47 Years, (Manager Legal ) Resident Of 37, Sector 4, Udaipur (Raj.) ----Petitioner Versus 1. Union Of India, Through Secretary, Finance Department, Government Of India, New Delhi 2. The Chief Commissioner, Central Goods And Services Tax, Statue Circle, C Scheme, Jaipur 3. The Commissioner, State Goods And Service Tax Kar Bhawan, Ambedkar Circle, Jaipur 4. The Assistant Commissioner, Central Goods And Services Tax, Lic Building, Near Reti Stand Division-B, Udaipur- 313002 ----Respondents [2024:RJ-JP:27907-DB] (2 of 3) [CW-1679/2021] For Petitioner(s) : Mr.Pankaj Ghiya, Ms.Pridhi Jain & Mr.Mayank Vyas For Respondent(s) : Mr.Sandeep Taneja, AAG with Ms.Kinjal Surana HON'BLE MR. JUSTICE AVNEESH JHINGAN HON'BLE MR. JUSTICE ASHUTOSH KUMAR

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.