M/S Shree Dev Narayan Marble vs. State Of Rajasthan

CW/1115/2024HC RajasthanGSTCNR RJHC01004898202415 February 2024Bench: MANINDRA MOHAN SHRIVASTAVA,MUNNURI LAXMAN2 pages

AI SummaryRemanded

Facts

The petitioner, M/s Shree Dev Narayan Marble, through its proprietor, filed a writ petition before the Rajasthan High Court at Jodhpur. The respondents are the State of Rajasthan and various GST authorities, including the Assistant Commissioner and the Appellate Authority. The petition was filed due to the non-constitution of the GST Tribunal. The revenue, represented by the State of Rajasthan, submitted that the Tribunal is yet to be constituted and suggested that the petition be disposed of with liberty to the petitioner to file an appeal within a stipulated period from the date of the Tribunal's constitution, subject to compliance with Section 112(8) of the Rajasthan Goods and Services Tax Act, 2017. The petitioner agreed to this arrangement.

Held

The Court decided to dispose of the writ petition with a specific direction. It held that if the petitioner complies with the payment requirements as stipulated in Sub-section (8) of Section 112 of the Rajasthan Goods and Services Tax Act, 2017, no recovery proceedings shall be initiated for the balance amount. 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 reasoning is based on the acknowledgment of the non-constitution of the Tribunal and the need to provide a procedural recourse to the petitioner while adhering to the statutory framework. The ratio decidendi is that in the absence of a functional Tribunal, the High Court can grant interim protection and a pathway for future appeal, provided the petitioner fulfills pre-appeal payment obligations as mandated by law.

Key Issues

1. Whether the writ petition should be entertained and kept pending in light of the non-constitution of the GST Tribunal, or if it should be disposed of with liberty to file an appeal upon the Tribunal's constitution, subject to statutory compliance? (Mixed question of law and fact, concerning procedural remedies under the Rajasthan Goods and Services Tax Act, 2017). Petitioner's Contention: The petitioner agreed to the disposal of the petition on the condition proposed by the revenue, which involved filing an appeal within a stipulated period after the Tribunal's constitution, provided certain conditions regarding payment were met. Revenue's Contention: The revenue argued that the Tribunal has not yet been constituted, and therefore, the writ petition should not be kept pending. They proposed that the petition be disposed of with liberty to the petitioner to file an appeal within a specified period from the date the Tribunal is constituted, relying on a circular dated 23.03.2020 issued by the Government of Rajasthan, Finance Department (Tax Division), and the provisions of Section 112(8) of the Act.

Sections Cited

Section 112(8)

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

[2024:RJ-JD:7898-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR D.B. Civil Writ Petition No. 1115/2024 M/s Shree Dev Narayan Marble, Through Its Proprietor Narayan Lal Gurjar S/o Lachhi Ram Gurjar Aged About 44 Years, R/o Doomkhera Post Mahasatiyon Ki Madri Teh. Kunawaria Distt. Rajsamand (Raj.) 313324 ----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 15/02/2024 Though the matter comes up for admission today, with the consent of the parties, the petition is being disposed of 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 112(8) of the Rajasthan Goods and Services Tax, 2017 (for short

[2024:RJ-JD:7898-DB] (2 of 2) [CW-1115/2024] '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 3-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.