2019 (9) TMI 818 - HC - GST

Non-constitution of the GST Tribunal - Held that - The learned Central Government Counsel, has brought on record copy of a communication dated 07.09.2019 issued by the Director, GST Council Secretariat - The same has been marked as 'X' and retained on record. By that, it has been stated that the next meeting of the GST Council is proposed to be held on 20th of this month, wherein, by way of Agenda Item (ii), the said Council may consider constitution of regional and area Benches in Uttar Pradesh. Also, he would submit that opinion of the Law Ministry has been sought with respect to the decision of the Division Bench of this Court (sitting at Lucknow) in Public Interest Litigation No. 6800 of 2019. In such facts, it appears proper that the present petition alongwith connected matters may remain provisionally maintained by this Court. List again on 16 October 2019

Summary

Issues:
1. Non-constitution of the Appellate Tribunal under the U.P. GST Act, 2017.
2. Challenges regarding the availability of alternative remedies due to the absence of the Tribunal.
3. Jurisdictional concerns between the Allahabad and Lucknow Benches.
4. Proposal for the establishment of regional and area Benches in Uttar Pradesh.

Analysis:
The judgment addresses the issue of the non-constitution of the Appellate Tribunal under the U.P. GST Act, 2017, despite more than two years having passed since the Act came into force. This delay has led to a significant number of first appeals being filed, with a considerable portion already decided by various authorities. The absence of the Tribunal has resulted in petitions being filed before the High Court, as parties claim the unavailability of alternative remedies due to the non-constitution of the Tribunal, which the Union is responsible for establishing.

Another issue highlighted is the jurisdictional concerns between the Allahabad and Lucknow Benches of the High Court. The distribution of cases and appeals arising from different districts within the state has led to discussions on the appropriate seat for the proposed Tribunal. The petitioners argue that the seat should be determined based on the number of appeals arising from each jurisdiction to maintain the fundamental aspects of the amalgamation order defining the Court's jurisdiction in Allahabad and Lucknow.

Furthermore, the judgment discusses a communication from the Director, GST Council Secretariat, indicating a proposal to consider the constitution of regional and area Benches in Uttar Pradesh during the upcoming GST Council meeting. The Law Ministry's opinion has been sought regarding a decision by the Lucknow Bench in a Public Interest Litigation, adding to the complexity of the issue. The Court decides to provisionally maintain the present petition and connected matters, awaiting updates from the GST Council meeting scheduled for the following month.

In conclusion, the judgment delves into the challenges arising from the non-constitution of the Appellate Tribunal, jurisdictional considerations between the Allahabad and Lucknow Benches, and the proposal for establishing regional and area Benches in Uttar Pradesh. The Court's decision to await updates from the GST Council meeting reflects a cautious approach towards resolving these complex legal issues effectively.