2020 (1) TMI 513 - HC - GST

Appeal against the order of first appellate authority - non constitution of GST Tribunal - validity of orders passed by the appellate authority under Section 107 of the U.P. Goods and Service Tax Act, 2017 - HELD THAT - It is an admitted position that all the orders which have been passed under the GST Act by the appellate authority concerned are appealable under Section 112 of the GST Act before the Goods and Service Tax Tribunal - It is needless to say that GST Tribunal has been provided for under Section 109 of the GST Act, giving forum to the aggrieved persons to seek redressal of their grievance before the GST Tribunal against the orders passed by the first appellate authority. The GST Act came into force on 01.07.2017 and even after expiry of more than two and half years, it is very surprising and anguishing to note that till date benches of GST Tribunal have not been constituted in the State of U.P. despite various observations/directions made by this Court by means of interim orders and final judgments passed by this Court at Allahabad and Lucknow. Due to non constitution of the GST Tribunal, number of writ petitions are being filed in the High Court thereby further burdening the Court. This Court has no option but to issue direction for personal appearance of competent authority before the Court. Therefore, officer of the Government of India not below the rank of Additional Secretary, Ministry of Finance, Government of India, New Delhi shall appear before this Court on 16.01.2020 for assistance, on which date the Officer is required to inform the Court as by which date the GST Tribunal would be constituted in the State of U.P. Let the bunch of cases be listed on 16.01.2020.

Summary

Issues:
Challenge to orders passed by appellate authority under the U.P. Goods and Service Tax Act, 2017 due to non-constitution of the GST Tribunal in the State of Uttar Pradesh.

Analysis:
The writ petitions challenge orders passed by the appellate authority under the U.P. Goods and Service Tax Act, 2017, which are appealable before the Goods and Service Tax Tribunal. However, due to the non-constitution of the GST Tribunal in the State of Uttar Pradesh, petitioners are compelled to file writ petitions under Article 226 of the Constitution of India. The Court noted the delay in constituting the GST Tribunal despite various directions and observations made in previous judgments and interim orders at Allahabad and Lucknow. The absence of the GST Tribunal in Uttar Pradesh is causing an influx of writ petitions, burdening the High Court.

The Union of India, despite repeated orders and communications, failed to provide instructions or information regarding the establishment of GST Tribunal benches. While the Tribunal is mandated under Section 109 of the GST Act to provide a forum for aggrieved parties, the delay in constituting benches in Uttar Pradesh is concerning. The Court highlighted that in other states, the GST Tribunal has been established, but Uttar Pradesh lags behind in this regard.

In response to the lack of progress, the Court directed a competent authority not below the rank of Additional Secretary, Ministry of Finance, Government of India, to appear before the Court on a specified date. This appearance is necessary to provide information on the timeline for the constitution of the GST Tribunal in Uttar Pradesh. The petitioners' counsels undertook to serve the Ministry of Finance with the Court's order, and the Union of India's Standing Counsel was tasked with ensuring the competent authority's presence on the designated date.

In conclusion, the Court's intervention was necessitated by the failure to constitute the GST Tribunal in Uttar Pradesh, leading to a surge in writ petitions. The directive for the competent authority to appear aims to address the delay and provide clarity on the establishment of the Tribunal in the state. The upcoming hearing on 16.01.2020 will further address this issue.