HC directs Government to complete the selection process of members within four months for initiating GSTAT operations

[CA Bimal Jain]

The Hon’ble Kerala High Court in the case of CA. P.J. JOHNEY AND MEENAKSHI P.R. VERSUS GST COUNCIL NEW DELHI, UNION OF INDIA AND STATE OF KERALA - 2024 (9) TMI 1633 - KERALA HIGH COURT, directed the Government to appoint members within four months for initiating Goods and Services Tax Appellate Tribunal (“GSTAT”) operations. However, the Court denied the Assessee’ s request to amend Section 169 of the Central Goods and Services Tax Act (“the CGST Act”) making service of notices and orders through at least three modes of service mandatory, stating that such issues were subject to individual litigation and therefore, cannot be adjudicated upon by way of Public Interest Litigation (“PIL”).

Facts:

CA. P.J. Johney (“the Petitioner”), filed a PIL challenging the delay in establishment of GST Appellate Tribunal and seeking an amendment to Section 169 of the CGST Act. The Petitioner argued that the GSTAT, as required under Section 112 of the CGST Act, has not yet been established and requested the Hon’ble High Court to expedite its establishment. Additionally, the Petitioner sought amendment in Section 169 of the CGST Act, thereby, mandating assessing officers serve notices and orders through at least three different modes to ensure that the principles of natural justice is complied with and adequate opportunity of hearing is provided.

Held:

The Hon’ble Kerala High Court in CA. P.J. JOHNEY AND MEENAKSHI P.R. VERSUS GST COUNCIL NEW DELHI, UNION OF INDIA AND STATE OF KERALA - 2024 (9) TMI 1633 - KERALA HIGH COURT held as that the request to amend Section 169 of the CGST Act  requiring multiple modes of services for notices and orders cannot be adjudicated upon in PIL and is subject to individual litigation. The Hon’ble High Court further directed the Government to complete the selection process within four months for initiating GST operation.  

Our Comments:

Section 112 of the CGST Act relates to appeal to appellate tribunal by any person who is aggrieved by the decision or order passed by the appellate authority or revisional authority. The section also provides for appeal by revenue department against the decision or order passed by the appellate or revisional authority. Further, Section 110 of the CGST Act interlalia relates to qualification, appointment or conditions of service relating to the appointment of members for GSTAT.

(Author can be reached at [email protected])