M/S Genus Innovation LTD. vs. Union Of INDIA
Facts
The petitioner, M/s Genus Innovation Ltd., filed a writ petition before the Rajasthan High Court. The respondents, Union of India and the State of Rajasthan, along with the Appellate Authority and Joint Commissioner (State Tax), were arrayed as parties. The petition was listed for admission but was disposed of finally with the consent of both parties. The core of the matter revolves around the non-constitution of the GST Tribunal and the petitioner's inability to file a statutory appeal. The respondents suggested disposing of the petition 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 after the Tribunal's constitution. A circular dated 23.03.2020 from the Government of Rajasthan, Finance Department (Tax Division), was cited in support.
Held
The Court decided to dispose of the writ petition at this stage. The primary finding was that the petition should not be kept pending due to the non-constitution of the Tribunal. The Court accepted the respondents' submission that the petitioner should be granted protection under Section 112(8) of the Rajasthan Goods and Services Tax Act, 2017. This means that if the petitioner makes the payment as stipulated in sub-section (8) of Section 112, further proceedings for the recovery of the balance amount shall not be drawn. The crucial condition for this protection is that the petitioner must avail the statutory remedy of appeal within a period of three months from the date the Tribunal is constituted. The ratio decidendi is that in the absence of a functional Tribunal, High Courts can provide interim relief and a pathway for future appeal, contingent upon compliance with statutory pre-deposit provisions.
Key Issues
1. Whether the writ petition should be kept pending or disposed of in light of the non-constitution of the GST Tribunal and the ongoing process for its constitution? Petitioner's Contention: The petitioner implicitly sought a remedy or protection due to the absence of the appellate mechanism. Respondents' Contention: The respondents argued that the petition should not be kept pending. Instead, it should be disposed of with liberty to the petitioner to file an appeal within a stipulated period from the date the Tribunal is constituted, provided the petitioner makes the payment as per the provisions of Section 112(8) of the Rajasthan Goods and Services Tax Act, 2017. They relied 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
[2024:RJ-JP:10952-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Civil Writ Petition No. 19983/2023 M/s Genus Innovation Ltd., Spl 2B, Riico Industrial Area, Sitapura, Tonk Road, Jaipur- 302022 Through Its Agm And Authorized Signatory Shri Kush Mittal Son Of Shri Bimal Mittal, Aged 43 Years, Resident Of 23/106, Swarn Path, Opp. Tagore Public School, Mansarovar, Jaipur. ----Petitioner Versus
Union Of India, Through Secretary, Ministry Of Finance, No. 137, North Block, New Delhi- 110001. 2. The State Of Rajasthan, Through Principal Secretary, Finance Department, Secretariat, Jaipur.
The Appellate Authority, State Tax, Jaipur-Ii, Kar Bhawan, Ambedkar Circle, Jaipur.
The Joint Commissioner (State Tax), Enforcement Wing-I, Circle-A, Rajasthan, Jaipur. ----Respondents For Petitioner(s) : Mr. Alkesh Sharma with Mr. Ayush Sharma For Respondent(s) : Mr. Kinshuk Jain for respondent no.1 with Mr. Sorabh Jain HON'BLE THE CHIEF JUSTICE MR. MANINDRA MOHAN SHRIVASTAVA HON'BLE MR. JUSTICE BHUWAN GOYAL Order 04/03/2024
Though the matter comes up for admission today, with the consent of the parties, the petition is being disposed of finally.
At the outs
The judgment continues below.
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