M/S Bherunath Marble vs. State Of Rajasthan

CW/1517/2024HC RajasthanGSTCNR RJHC01007473202420 March 2024Bench: MANINDRA MOHAN SHRIVASTAVA,MUNNURI LAXMAN2 pages

AI SummaryRemanded

Facts

The petitioner, M/s Bherunath Marble, filed a writ petition before the Rajasthan High Court at Jodhpur. The respondents, including the State of Rajasthan and various GST authorities, appeared. The matter was listed for admission but was disposed of finally with the consent of both parties. The core issue revolved around the non-constitution of the GST Tribunal, which prevented the petitioner from filing a statutory appeal. The respondents proposed a solution based on Section 112(8) of the Rajasthan Goods and Services Tax Act, 2017, allowing the petitioner to approach the Tribunal within a stipulated period after its constitution, provided certain payments were made.

Held

The Court disposed of the writ petition with a specific direction. It held that if the petitioner complies with the provisions of Sub-section (8) of Section 112 of the Rajasthan Goods and Services Tax Act, 2017, no further recovery proceedings for the balance amount shall 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 proposal made by the respondents, acknowledging the ongoing process of Tribunal constitution and the need to provide a procedural pathway for the petitioner to pursue their statutory rights. The reasoning is primarily based on facilitating access to justice by providing a window for appeal once the appellate mechanism is functional, while ensuring compliance with the pre-deposit requirements stipulated in the Act.

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 statutory remedy of appeal is currently unavailable. Petitioner's contention: The petitioner, unable to file a statutory appeal due to the absence of the Tribunal, sought appropriate directions from the High Court. The specific arguments are not detailed beyond agreeing to the proposed disposal method. Revenue's contention: The respondents argued that the Tribunal is in the process of constitution. They proposed that the writ petition should not be kept pending but disposed of with protection under Section 112(8) of the Rajasthan Goods and Services Tax Act, 2017. This would allow the petitioner to file an appeal within a specified period from the Tribunal's constitution. 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:13359-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR D.B. Civil Writ Petition No. 1517/2024 M/s Bherunath Marble, Karanpuriya Post Binol Teh. Kunwaria Distt. Rajsamand (Raj.) 313327 ----Petitioner Versus 1. State Of Rajasthan, Through Principal Secretary, Finance Department (Tax Division), Secretariat, Jaipur. 2. Commissioner, Rajasthan State Gst Department, Kar Bhawan, Jaipur. 3. Assistant Commissioner, Assistant Commissioner, Circle Rajsamand, Ward 1, Bhilwara, Rajasthan. 4. Additional Commissioner, Appellate Authority, State Taxes, Udaipur. ----Respondents For Petitioner(s) : Mr. Priyansh Arora For Respondent(s) : Mr. Sunil Bhandari HON'BLE THE CHIEF JUSTICE MR. MANINDRA MOHAN SHRIVASTAVA HON'BLE MR. JUSTICE MUNNURI LAXMAN

Order 20/03/2024

Mr. Sunil Bhandari appears for the respondents on advance copy of the writ petition.

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 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

[2024:RJ-JD:13359-DB] (2 of 2) [CW-1517/2024] 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. (MUNNURI LAXMAN),J (MANINDRA MOHAN SHRIVASTAVA),CJ 76-divyaP/-

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.