2019 (8) TMI 1081 - HC - GST

Statutory remedy of appeal - GST Tribunal has yet not been constituted. - section 107 of U.P. GST Act, 2017 HELD THAT - Though initially certain orders had been passed in the present proceedings requiring the State and the Union to make their stand known with respect to constitution of the Tribunal, at present, in view of the subsequent developments noted above and cognizance having been taken by the division bench of this Court whereupon a Full Bench has been constituted, no further orders are required to be passed in the present proceedings with respect to constitution of the Tribunal. The present writ petitions would be remain entertained, in absence of the Tribunal.

Summary

Issues:
Non-constitution of the Appellate Tribunal under the U.P. GST Act, 2017 leading to writ petitions challenging orders passed by first appeal authorities.

Analysis:
The judgment pertains to a series of writ petitions filed before the Allahabad High Court challenging orders passed by various first appeal authorities under the U.P. GST Act, 2017, due to the non-constitution of the Appellate Tribunal as mandated by the Act. The petitioners, represented by multiple learned counsels, argued that despite over two years passing since the enforcement of the Act, the Tribunal has not been constituted, leading to a backlog of appeals. The State of U.P. expressed helplessness, stating that the Union is responsible for constituting the Tribunal, and a proposal in this regard has already been made. The Court noted that 6,163 first appeals were instituted under the Act, with 2,339 appeals decided by a certain date, further emphasizing the need for the Tribunal's establishment.

The absence of the Tribunal directly impacts the grievances arising from the 2,339 first appeal orders, prompting the filing of writ petitions before the High Court. The Court acknowledged that the alternative remedy of appeal before the Tribunal is not available due to its non-constitution, leading to the acceptance of the writ petitions. The State's limited role in proposing the Tribunal's formation was highlighted, with the matter now under the scrutiny of a Full Bench of the Court following various orders passed by different benches. The jurisdictional distribution of appeals between the Lucknow and Allahabad Benches was discussed, with the petitioners advocating for the Tribunal's seat based on the proportion of appeals arising in each jurisdiction.

The Court, considering the ongoing developments and the constitution of a Full Bench, decided that no further orders were necessary at the moment regarding the Tribunal's formation. The writ petitions were to be entertained in the absence of the Tribunal, with a list of cases scheduled for a future hearing date. The judgment underscores the critical issue of the non-constitution of the Appellate Tribunal under the U.P. GST Act, 2017, and the resulting impact on the disposal of appeals, necessitating judicial intervention through writ petitions before the High Court.