M/S Srh Incorporation vs. Union Of INDIA

Facts

The petitioner, M/s Srh Incorporation, filed a writ petition before the Rajasthan High Court at Jodhpur. The respondents included the Union of India, the Assistant Commissioner, Central Goods and Services Tax, and the State of Rajasthan. The specific tax period and the order or action under challenge, as well as the amount in dispute, are not explicitly detailed in the provided judgment excerpt. The procedural history indicates that the parties jointly submitted that the controversy was resolved by a previous Division Bench judgment in M/s. Shree Dev Narayan Marble v. State of Rajasthan & Ors. The respondents' counsel submitted that as the Tribunal had not yet been constituted, the petition should 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 after the Tribunal's constitution. The petitioner's counsel agreed to this condition.

Held

The Court held that the writ petition should be disposed of in light of the adjudication made in a previous Division Bench judgment of the same Court in M/s. Shree Dev Narayan Marble v. State of Rajasthan & Ors. The Court accepted the joint submission of the parties. The operative direction was that the petitioner, upon making payment as per the provisions contained in Sub-section (8) of Section 112 of the Act, would be protected from further proceedings for recovery of the balance amount. This protection 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 reasoning is based on the current procedural situation where the Tribunal is not yet constituted, and the need to provide a mechanism for the petitioner to pursue their statutory remedy without prejudice. The ratio is that in the absence of a constituted Tribunal, High Courts can dispose of petitions with directions for future appeal filing, subject to compliance with pre-deposit provisions, to ensure statutory rights are preserved.

Key Issues

1. Whether the writ petition should be disposed of without keeping it pending, given the non-constitution of the GST Tribunal, and with appropriate protection for the petitioner's right to appeal? (Question of law, turning on the interpretation of procedural provisions and the intent of the GST Act in the absence of a functional Tribunal). Petitioner's contentions: The petitioner agreed to the disposal of the petition on the condition proposed by the respondents regarding the appeal period after the Tribunal's constitution. Respondents' contentions: The respondents argued that since the Tribunal has not been constituted and the process is ongoing, the petition should not be kept pending. They proposed that the petition be 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 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).