Anjuman Hospital vs. State Of Rajasthan

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CW/13895/2025HC RajasthanGSTCNR RJHC02077664202529 October 2025Bench: ASHUTOSH KUMAR4 pages
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Facts

The petitioner, Anjuman Hospital, a 95-bed facility authorized under the 'Mukhyamantri Chiranjeevi Swasthya Bima Yojana', challenged orders dated 21.09.2023, 30.09.2024, and 07.08.2025. The initial order dated 21.09.2023, passed by an unspecified authority, ascertained a recovery of Rs.14,99,942/- and a penalty of Rs.74,99,710/-, along with 18% GST of Rs.13,49,948/-. The petitioner's first appeal before the Chief Executive Officer and Chairman SGRC, RSHAA (respondent No.4) upheld the recovery and penalty amounts but waived the GST. The petitioner's second appeal before the Chairman (Appellate Tribunal, RSHAA) (respondent No.3) upheld the first appellate order. The petitioner's ID was suspended, requiring deposit of penalty and recovery amounts to be reopened.

Held

The Court directed the petitioner to deposit the recovery amount of Rs.14,99,942/- in the form of a Demand Draft in favour of 'The New India Assurance Company Ltd.' payable at Jaipur within three days of the order. Regarding the penalty amount of Rs.74,99,710/-, the Court allowed it to be deposited in five equal installments of Rs.14,99,942/- each, with the first installment due on 15.11.2025 and subsequent installments on the 5th of each consecutive month. The respondents were directed to open the petitioner's ID upon successful deposit of the recovery amount and the first installment of the penalty. It was clarified that any default in installments would entitle the respondents to suspend the ID and take further action as per law. The issue of GST was not expressly revisited in the final directions.

Key Issues

1. Whether the impugned orders dated 21.09.2023, 30.09.2024, and 07.08.2025, which ascertain a recovery of Rs.14,99,942/- and a penalty of Rs.74,99,710/- against the petitioner, are legally sustainable? The petitioner argued that the GST component was waived by the first appellate authority and sought to deposit the penalty and recovery amounts in installments. The respondents contended that there is no policy for accepting penalty amounts in installments and insisted on a lump-sum deposit before reopening the petitioner's ID. The court had to decide on the sustainability of the ascertained amounts and the possibility of installment payments.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
[2025:RJ-JP:43385] HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR S.B. Civil Writ Petition No. 13895/2025 Anjuman Hospital, Through Director/proprietor Deen Mohammad S/o Asru, Resident Of Bijli Board, Tapukara District Alwar. ----Petitioner Versus 1. State Of Rajasthan, Through Its Secretary, Department Of Medical And Health Department Govt. Of Rajasthan, Secretariat, Jaipur. 2. The Joint Chief Executive Officer, Rajasthan State Health Assurance Agency, Swasthya Bhawan, Ashok Nagar, C- Scheme, Jaipur. 3. The Chairman (Appellate Tribunal, RSHAA), And Chief Secretary (Medical Health And Family Welfare), Govt. Of Rajasthan, Secretariat, Jaipur. 4. The Chief Executive Officer And Chairman SGRC, RSHAA, Mukhya Mantri Aayushman Aarogya Yojna, Rajasthan State Health Assurance Agency, Swasthya Bhawan, Ashok Nagar, C-Scheme, Jaipur. ----Respondents For Petitioner(s) : Mr. Mirza Faisal Baig, Adv. with Mr. Soharab Khan, Adv. For Respondent(s) : Mr. Archit Bohra, Adv. Mrs. Sunita Yadav, Executive Director, Grievance (present in person) HON'BLE MR. JUSTICE ASHUTOSH KUMAR

Order 29/10/2025

1.

The present petition has been filed by the petitioner seeking following remedies:- "It is therefore, humbly prayed that this Hon'ble Court be pleased to accept and allow this writ petition and issue following writ, order or direction;

[2025:RJ-JP:43385] (2 of 4) [CW-13895/2025] (i) The impugned

orders

dated 21.09.2023, 30.09.2024 and 07.08.2025 may kindly be quashed and set aside; (ii) Any other relief as this Hon'ble Court may deem fit and proper be also passed in favour of the petitioner; (iii) Cost of the writ petition may also be awarded in fovour of the petitioner;"

2.

Learned counsel for the petitioner submits that the petitioner is a Hospital having 95 beds, serving the patients of local area and was authorized under 'Mukhyamantri Chiranjeevi Swasthya Bima Yojana'. Learned counsel further submits that vide order dated 21.09.2023 (Annexure-2) a recovery of Rs.14,99,942/- was ascertained against the hospital along with penalty of Rs.74,99,710/- along with 18% GST i.e. Rs.13,49,948/-.

3.

Learned counsel for the petitioner contends that by way of first appeal, the impugned order dated 21.09.2023 was challenged by the petitioner and vide order dated 30.09.2024 (Annexure-3), the first appeal was decided by the respondent No.4-Chief Executive Officer and Chairman SGRC, RSHAA (hereinafter referred to as learned 'First Appellate Court'). Vide order dated 30.09.2024 passed by learned First Appellate Court, the amount of recovery i.e. Rs.14,99,942/- along with amount of penalty i.e. Rs.74,99,710/- was upheld, however, 18% GST i.e. Rs.13,49,948/- was waived of and the petitioner was directed to deposit the same within a period of 30 days of passing of the said order. Learned counsel further contends that aggrieved of the order dated 30.09.2024 passed by learned First Appellate Court, second appeal was filed on behalf of the petitioner and vide order dated 07.08.2025 passed by the respondent No.3-Chairman (Appellate Tribunal, RSHAA) and Chief Secretary (Medical Health

[2025:RJ-JP:43385] (3 of 4) [CW-13895/2025] and Family Welfare), the second appeal was disposed of and the order dated 30.09.2024 was upheld.

4.

Learned counsel for the petitioner argues that ID of the petitioner has been suspended by the respondents and is ordered to be opened, only after depositing the penalty along with the recovery amount. Learned counsel also argues that the petitioner is ready and willing to deposit the penalty and the recovery amount at the earliest, however, it may be ordered to be deposited in some instalments and the respondents may be directed to open the ID of the petitioner.

5.

Mr. Archit Bohra, learned Additional Government Counsel appearing on behalf of the respondents vehemently opposes the prayer made on behalf of the petitioner. Learned Additional Government Counsel prays that there is no policy of receiving the penalty amount in instalments, therefore, the petitioner may be ordered to deposit the penalty and the recovery amount as a whole at once, only then ID of the petitioner shall be opened in favour of the petitioner.

6.

Heard learned counsel for the parties and perused the material available on record.

7.

Considering the overall facts and circumstances of the case, this Court deems it proper to dispose of the present petition with the direction to the petitioner to deposit the recovery amount i.e. Rs.14,99,942/-, in the form of Demand Draft in favour of 'The New India Assurance Company Ltd.' payable at Jaipur within three days of passing of this order and amount of penalty i.e. Rs.74,99,710/-, in five instalments and each instalment being Rs.14,99,942/-, to be deposited with the respondent No.4-Chief

[2025:RJ-JP:43385] (4 of 4) [CW-13895/2025] Executive Officer and Chairman SGRC, RSHAA. It is also directed to the petitioner that the first instalment of Rs.14,99,942/- shall be deposited on 15.11.2025 and all other instalments shall be deposited on 5th of every month consecutively.

8.

It is made clear that if the petitioner deposits the recovery amount i.e. Rs.14,99,942/-, in the form of Demand Draft in favour of 'The New India Assurance Company Ltd.' payable at Jaipur within three days of passing of this order and first instalment of penalty amount i.e. Rs.14,99,942/- on 15.11.2025, with the respondent No.4-Chief Executive Officer and Chairman SGRC, RSHAA, the respondents are directed to open the ID of the petitioner. It is also made clear that if the petitioner makes any default in payments of any of the instalments due, the respondents shall be at liberty to suspend the ID of the petitioner and to take any other action against the petitioner in accordance with law. (ASHUTOSH KUMAR),J AARZOO ARORA /164-S.

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.