M/S Kumbhalgarh Yatri Niwas Private Limited Hotel Kumbhal Mehar vs. Union Of INDIA

CW/10162/2024HC RajasthanGSTCNR RJHC01045724202402 July 2024Bench: MANINDRA MOHAN SHRIVASTAVA,MADAN GOPAL VYAS2 pages

AI SummaryRemanded

Facts

M/s Kumbhalgarh Yatri Niwas Private Limited (the petitioner) filed a writ petition before the Rajasthan High Court at Jodhpur. The respondents, Union of India and the State of Rajasthan through its GST authorities, appeared. The petition was listed for admission but, with the consent of both parties, was disposed of finally. The respondents' counsel informed the Court that the GST Tribunal had not yet been constituted, although the process was ongoing. They proposed that the petition not be kept pending but be disposed of 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 from the Tribunal's constitution. The petitioner's counsel agreed to this proposal.

Held

The Court disposed of the writ petition with a specific direction. It held that if the petitioner makes the payment as stipulated in Sub-section (8) of Section 112 of the Rajasthan Goods and Services Tax Act, 2017, further proceedings for the recovery of the balance amount shall not be drawn. 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 proposal made by the respondents and agreed to by the petitioner, effectively granting a stay on recovery proceedings subject to the petitioner fulfilling the conditions for filing an appeal once the Tribunal is functional. No issue was expressly left undecided.

Key Issues

1. Whether the petitioner should be granted protection from recovery proceedings for the balance amount of tax, interest, penalty, or other dues, pending the constitution of the GST Tribunal, in terms of Section 112(8) of the Rajasthan Goods and Services Tax Act, 2017? Petitioner's Argument: The petitioner agreed to the proposal for disposal of the petition on the condition of availing statutory remedy within a stipulated period from the date of the Tribunal's constitution, implying acceptance of the proposed protection. Revenue/State's Argument: The Tribunal is not yet constituted, and the process is ongoing. Therefore, the petition may not be kept pending but disposed of with appropriate protection available under Section 112(8) of the Act, allowing the petitioner to file an appeal within a stipulated period from the date the Tribunal is constituted. Reliance was placed 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-JD:26404-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR D.B. Civil Writ Petition No. 10162/2024 M/s Kumbhalgarh Yatri Niwas Private Limited Hotel Kumbhal Mehar, Near Lakhela Talab, Beed Ki Bhagal, Tehsil-Kelva, Rajsamand-Rajasthan-313325 Through Its Authorized Signatory Shubham Mehta ----Petitioner Versus 1. Union Of India, Through Secretary Finance, Ministry Of Finance, North Block, New Delhi-110001 2. State Of Rajasthan, Through Secretary Finance, Secretariat, Janpath, Jaipur-302015 3. Deputy Commissioner, State Goods And Service Tax Department, Circle-A, Rajsamand, Kar Bhawan, 100 Ft Road, Opposite Collector Bungalow, Rajsamand ----Respondents For Petitioner(s) : Mr. Sarvesh Jain, through VC For Respondent(s) : Mr. Mahaveer Bishnoi, AAG Mr. Mukesh Rajpurohit, Dy.S.G HON'BLE THE CHIEF JUSTICE MR. MANINDRA MOHAN SHRIVASTAVA HON'BLE MR. JUSTICE MADAN GOPAL VYAS

Order 02/07/2024

Heard.

Mr. Mukesh Rajpurohit, Dy.S.G. appeared for respondent No.1 and Mr. Mahaveer Bishnoi, learned Additional Advocate General appeared for respondent nos.2 and 3 on advance copy.

Though the matter comes up for admission today, with the consent of the parties, the petition is being disposed off finally.

At the outset, learned counsel for the respondents has submitted that at present the Tribunal has not been constituted

[2024:RJ-JD:26404-DB] (2 of 2) [CW-10162/2024] and the process towards constitution of the Tribunal is going on, therefore, in these circumstances, this petition may not be kept pending but with appropriate protection available under Section112(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. (MADAN GOPAL VYAS),J (MANINDRA MOHAN SHRIVASTAVA),CJ 9-pooja/-

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.