M/S Okaya Power Private Limited vs. Deputy Commissioner Of State Tax

CW/8059/2024HC RajasthanGSTCNR RJHC02040085202429 May 2024Bench: MANINDRA MOHAN SHRIVASTAVA,BHUWAN GOYAL2 pages

AI SummaryRemanded

Facts

M/s Okaya Power Private Limited (Petitioner) filed a writ petition before the Rajasthan High Court. The respondents, including the Deputy Commissioner of State Tax and the Union of India, appeared. The matter was listed for admission but, with the consent of all parties, was disposed of finally. The respondents' counsel submitted that the GST Tribunal had not yet been constituted, and the process was ongoing. They proposed that the petition not be kept pending but 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 arrangement.

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 initiated. 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 parties' consensus to dispose of the matter in this manner, acknowledging the ongoing process of Tribunal constitution. The primary reasoning was to provide a procedural pathway for the petitioner to pursue their statutory rights while accommodating the current administrative situation regarding the Tribunal.

Key Issues

1. Whether the writ petition should be kept pending or disposed of in light of the non-constitution of the GST Tribunal, considering the provisions of Section 112(8) of the Rajasthan Goods and Services Tax Act, 2017? Petitioner's contention: The petitioner agreed to the disposal of the petition on the condition proposed by the respondents, which involved availing the statutory remedy of appeal within a stipulated period from the Tribunal's constitution, with protection against recovery of the balance amount. Respondents' contention: The respondents argued that the petition should not be kept pending due to the non-constitution of the Tribunal. They relied on a circular dated 23.03.2020 issued by the Government of Rajasthan, Finance Department (Tax Division), and proposed disposing of the petition with liberty to the petitioner to file an appeal within a stipulated period from the date the Tribunal is constituted, provided the petitioner makes payment as per Section 112(8) of the Act.

Sections Cited

Section 112(8)

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

[2024:RJ-JP:25598-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Civil Writ Petition No. 8059/2024 M/s Okaya Power Private Limited, Plot No. C-2-D, Aakera Doongar, Road No. 18, VKI Area, Jaipur, 302013 Through Naresh Kumar Singhal S/o Shri Madan Lal Singhal, Aged About 59 Years, Director And Authorised Signatory. ----Petitioner Versus 1. Deputy Commissioner Of State Tax, Jaipur, Circle-B, Enforcement Wing-III, Kar Bhawan, Bhawani Singh Road, Jaipur- 302005, Rajasthan 2. Union Of India, Through The Secretary Finance, Ministry Of Finance, 3rd Floor, Jeevan Deep Building, Sansad Marg, New Delhi. 3. State Of Rajasthan, Through Secretary Finance, Secretariat, C-Scheme, Jaipur. ----Respondents For Petitioner(s) : Mr. S. Jaikumar, Adv. through VC Mr. Ajay Kumar Agarwal, Adv. For Respondent(s) : Mr. Bharat Vyas, AAG with Ms. Pratyushi Mehta, Adv. for respondent no. 1 & 3 Mr. Abhi Goyal, Adv. for respondent no.2 HON'BLE THE CHIEF JUSTICE MR. MANINDRA MOHAN SHRIVASTAVA HON'BLE MR. JUSTICE BHUWAN GOYAL

Judgment/Order 29/05/2024

Mr. Abhi Goyal, learned counsel, on advance copy, appears on behalf of Respondent No. 2. 2. Mr. Bharat Vyas, learned Additional Advocate General, on advance copy, appears on behalf of Respondents No. 1 and 3. [2024:RJ-JP:25598-DB] (2 of 2) [CW-8059/2024]

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 have 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, this 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 their submission, learned counsel for the respondents placed 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. (BHUWAN GOYAL),J (MANINDRA MOHAN SHRIVASTAVA),CJ Mohita/Inder-84

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.