Shankar Lal Jangir vs. Union Of INDIA

Facts

The petitioner, Shankar Lal Jangir, approached the Rajasthan High Court through a writ petition challenging an order passed by the Additional Commissioner (Appeals), State Tax Department. The respondents include the Union of India and the State of Rajasthan, along with their respective GST authorities. The specific tax period and the amount in dispute are not explicitly mentioned in the provided text. The procedural history indicates that the parties jointly submitted that the controversy was covered by a previous judgment of the same court in M/s Shree Dev Narayan Marble vs. State of Rajasthan & Ors. (D.B. Civil Writ Petition No.1115/2024), decided on 15.02.2024. The current petition was disposed of based on the directions given in that prior judgment.

Held

The Court held that the present petition could be disposed of in light of the judgment rendered in M/s Shree Dev Narayan Marble vs. State of Rajasthan & Ors. The reasoning was based on the joint submission of the parties and the specific directions issued in the prior case. The Court directed that if the petitioner makes the payment as per the provisions contained in Sub-section (8) of Section 112 of the Rajasthan Goods and Services Tax Act, 2017, further proceedings for 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 of the constitution of the Tribunal. The ratio decidendi is that in the absence of a constituted GST Tribunal, and with the consent of parties, High Courts can grant interim relief by directing pre-deposit of a portion of the disputed amount as per Section 112(8) and allowing the petitioner to file an appeal once the Tribunal is functional, thereby protecting the revenue while preserving the assessee's right to appeal.

Key Issues

1. Whether the present writ petition can be disposed of in light of the judgment in M/s Shree Dev Narayan Marble vs. State of Rajasthan & Ors. (D.B. Civil Writ Petition No.1115/2024), considering the ongoing process of constitution of the GST Tribunal? Petitioner's Contention: The petitioner agreed to the disposal of the petition on the condition proposed by the respondents, as outlined in the previous judgment. Respondents' Contention: The respondents argued that since the GST Tribunal has not yet been constituted, the petition should not be kept pending. They proposed that the petition be disposed of with appropriate 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 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).