M/S Arya Marble Suppliers vs. State Of Rajasthan

Facts

M/s Arya Marble Suppliers (the petitioner) filed a writ petition before the Rajasthan High Court at Jodhpur. The respondents are the State of Rajasthan and various GST authorities. The petitioner's grievance pertains to an order or action by a GST authority, though the specific order, tax period, and amount in dispute are not detailed in this judgment. The procedural history indicates that the parties jointly submitted that the controversy was resolved by a previous Division Bench decision in a similar case, M/s. Shree Dev Narayan Marble v. State of Rajasthan & Ors. The respondents' counsel submitted that the Tribunal has not yet been constituted, and proposed a disposal 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.

Held

The Court held that the controversy raised in the writ petition stands resolved in view of the adjudication made by a Division Bench in a similar case, M/s. Shree Dev Narayan Marble v. State of Rajasthan & Ors. The Court accepted the submission of the respondents' counsel that since the Tribunal has not been constituted, the petition should not be kept pending. Instead, it was disposed of with a direction that if the petitioner makes the payment as per the provisions of Sub-section (8) of Section 112 of the Act, further proceedings for recovery of the balance amount shall not be drawn. This is provided that the petitioner avails 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 appellate tribunal, and with the consent of parties, a High Court can grant interim protection and direct the party to avail the statutory remedy once the tribunal is established, subject to compliance with 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 availability of statutory remedies? (Question of law, concerning procedural fairness and statutory interpretation). Petitioner's argument: Not explicitly recorded, but agreed to the disposal of the petition on the condition proposed by the respondents. Respondents' argument: The Tribunal has not been constituted, and the process is ongoing. Therefore, the petition should not be kept pending. Instead, it should 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).