Chamunda Textile Vs State of Rajasthan (Rajasthan High Court)
SEO Description: Rajasthan High Court stays GST recovery and orders bank accounts defrozen in disputes over portal service and limitation for filing appeals.
Summary: The Rajasthan High Court, Jaipur Bench, in M/s Chamunda Textile Vs State of Rajasthan and a batch of connected writ petitions, granted interim protection to taxpayers challenging the rejection of GST appeals and other orders on limitation grounds. The Division Bench comprising Chief Justice Sanjay K. Agrawal and Justice Sameer Jain passed the order on 5 November 2026. With the agreement of the parties, the Court treated D.B. Civil Writ Petition No. 20282/2026, M/s Vishwas Telecom Vs State of Rajasthan, as the lead matter for factual reference. The principal controversy concerned the validity and effectiveness of communication through the GST portal and its implications for calculating the limitation period for appeals.
The petitioners relied upon the Rajasthan High Court’s earlier decision in M/s Ridhi Sidhi Trading Company Vs State of Rajasthan & Ors., D.B. Civil Writ Petition No. 18582/2026, wherein portal-based communication had not been accepted as appropriate service. They also referred to instructions dated 12 October 2026 issued by the Chief Commissioner, State Tax, Rajasthan, recognising postal communication as an additional mode of service following industry representations. The petitioners invoked Section 169 of the GST Act concerning service of communications upon taxpayers.
The Advocate General, appearing for the State, submitted that the circular merely recognised post as an additional mode of service and maintained that portal communication remained the relevant mode for determining the limitation period. After hearing the parties, the High Court considered the prima facie nature of the cases, irreparable injury and balance of convenience. It directed that recovery proceedings against the petitioners remain stayed and that bank accounts frozen on account of the disputed limitation issue be defrozen. The matters were directed to be listed on 17 December 2026. For certain petitions, the interim protection was made conditional upon removal of filing defects within seven days. The respondents were directed to file replies, and the parties were expected to exchange copies of the petitions and replies. The order grants interim relief and does not finally determine the legality of GST portal service or the commencement of the appeal limitation period.
Cases Discussed
- M/s Ridhi Sidhi Trading Company Vs State of Rajasthan & Ors. (Rajasthan High Court); D.B. Civil Writ Petition No. 18582/2026; 2026: Cited by the petitioners in support of their challenge to the effectiveness of portal-based service for calculating the limitation period. The present order records this reliance without finally adjudicating the issue.
FULL TEXT OF THE JUDGMENT/ORDER OF RAJASTHAN HIGH COURT
1. In the instant bunch of the matters, with the agreement of respective sides, for factual reference, the lead matter has been taken as D.B. Civil Writ Petition No.20282/2026 (M/s Vishwas Telecom Vs. State of Rajasthan).
2. The issue pertains to rejection of appeals and other impugned orders on the ground of the same being barred by the period of limitation.
3. Learned counsel for petitioners has relied upon judgment of passed at Principal Seat, Jodhpur in D.B. Civil Writ Peittion No.18582/2026 titled as M/s Ridhi Sidhi Trading Company Vs. State of Rajasthan & Ors., wherein the mode of service by portal was not recognized as appropriate service.
4. Learned counsel for petitioners has also relied upon instruction issued by the Chief Commissioner State Tax, Rajasthan dated 12.10.2026, wherein on the representations and feedbacks of the industry, post was recognized to be additional mode of service. Further, reliance is also placed upon the provisions of Section 169 of the GST Act, wherein communication of service will be recognized if communicated to such person.
5. Learned Advocate General has marked his appearance and submitted that the circular which has been issued, only specified additional mode as a post is identified. The service for the communication and for counting limitation period will be portal only.
6. After hearing the matter, considering prima facie nature of the case, irreparable injury and balance of convenience, the recovery initiated qua the petitioners in the present bunch of the petitions, shall remain stayed.
7. If any bank account has been freezed insofar, the same be de-freezed, if the same is on the ground of limitation and the subject matter of the present petition.
8. List these matter on 17.12.2026 along with DB Civil Writ Petition Nos.22740/2026, 21549/2026, 15120/2026, 21555/2026, 21870/2026, 22589/2026, 22406/2026, 12485/2025, 7968/2025, 21890/2026, 14469/2026, 22472/2026, 22735/2026, 22745/2026.
9. Defects be removed within seven days and subject to clearance of defect in DBCWP Nos.21870/2026, 22472/2026, 22735/2026, 22745/2026, 22589/2026 the interim relief as granted herein be made applicable upon the petitions enumerated in this paragraph also.
10. In the meantime, reply be filed.
11. We expect that the copies of the present petitions and reply shall be exchanged inter se the parties.
