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2022 (3) TMI 739 - HC - GSTMaintainability of appeal - appeal left remediless - non-constitution of State Bench and Area Benches of GST Tribunal in the State of Uttar Pradesh - HELD THAT - In view of alarming situation created due to non-establishing of State Bench and Area Benches of GST Tribunal in the State of Uttar Pradesh, rendering the entire class of dealers remediless under the Act, 2017 from availing statutory remedy of appeal under Section 112 of the Act, 2017, under the facts and circumstances and prevailing situation, the matter with regard to the following questions are referred to Larger Bench - (i) Whether by interim order dated 04.03.2021 in PIL CIVIL No.6024 of 2021 (Awadh Bar Association High Court, Lko Thru Gen.Secy. Anr. vs. U.O.I.Thru Secy. Finance Ministry, New Delhi Ors.) 2021 (3) TMI 244 - ALLAHABAD HIGH COURT , directing for not establishing GST Appellate Tribunal for State of Uttar Pradesh without leave of the court, could be passed in conflict with the final judgment dated 09.02.2021 in Writ Tax No.655 of 2018 2021 (2) TMI 435 - ALLAHABAD HIGH COURT passed by the Division Bench? (ii) Whether under the facts and circumstances of the case and in the interest of dealers in State of Uttar Pradesh under the CGST Act/ U.P.GST Act, 2017, a direction needs to be issued immediately to the respondent No.4 to notify the State Bench and Area Benches of GST Appellate Tribunal in the State of Uttar Pradesh, within a time bound period so that persons/ dealers may avail statutory remedy of appeal under Section 112 of the CGST Act/ U.P. GST Act, 2017 and they may not suffer further? (iii) Establishment of the State Bench of GST Appellate Tribunal at Prayagraj and its four Area Benches in the State of Uttar Pradesh in terms of the final judgment of the Division Bench dated 09.02.2021 in Writ Tax No.655 of 2018 (M/s Torque Pharmaceuticals Pvt. Ltd. vs. Union of India and 5 others) 2021 (2) TMI 435 - ALLAHABAD HIGH COURT and other 29 connected writ petitions? Let this order alongwith the records of the writ petition be placed before Hon ble the Chief Justice for constitution of a Larger Bench so that people in the State of Uttar Pradesh having right to avail remedy of appeal under Section 112 of the CGST/ U.P. GST Act, 2017 may avail the statutory remedy and may not remain remediless.
Issues Involved:
1. Maintainability of the writ petition under Article 226 of the Constitution of India. 2. Non-constitution of the GST Tribunal in Uttar Pradesh. 3. Impact of the interim order dated 04.03.2021 in PIL CIVIL No.6024 of 2021 on the establishment of the GST Tribunal. 4. Legal principles regarding the grant of interim orders in public interest litigations. 5. Referral to a Larger Bench for resolution of key questions. Issue-wise Detailed Analysis: 1. Maintainability of the writ petition under Article 226 of the Constitution of India: The respondents raised a preliminary objection regarding the maintainability of the writ petition, arguing that the petitioner has a statutory remedy of appeal under Section 112 of the Central Goods and Service Tax Act, 2017 (CGST Act, 2017). However, due to the non-constitution of the GST Tribunal in Uttar Pradesh, the petitioner and other dealers are left without a remedy. The court acknowledged that the High Court under Article 226 has wide powers but emphasized that such powers are not limitless. The court noted that the petitioner had no other recourse due to the absence of the Tribunal. 2. Non-constitution of the GST Tribunal in Uttar Pradesh: The court discussed the statutory mandate under Section 109 of the CGST Act, 2017, which requires the Central Government to constitute the GST Appellate Tribunal on the recommendation of the GST Council. The non-constitution of the Tribunal has left approximately 14 lakh registered dealers in Uttar Pradesh without a remedy since 2017. The court highlighted the urgency and necessity of establishing the Tribunal to address the appeals of the dealers. 3. Impact of the interim order dated 04.03.2021 in PIL CIVIL No.6024 of 2021: The interim order directed the respondents not to establish the GST Appellate Tribunal without the leave of the court. This order was passed in conflict with a final judgment dated 09.02.2021 in Writ Tax No.655 of 2018, which had directed the establishment of the Tribunal. The court questioned the validity of such an interim order, emphasizing that a coordinate bench cannot pass an order that effectively stays or dilutes the effect of a final judgment by another coordinate bench. 4. Legal principles regarding the grant of interim orders in public interest litigations: The court referred to several Supreme Court judgments to outline the principles governing the grant of interim orders. It emphasized that courts should be cautious in granting interim relief, especially when public interest is involved. Interim orders should not stultify statutory provisions unless the statute is manifestly unconstitutional. The court cited cases like Jaishri Laxmanrao Patil vs. State of Maharashtra and Union of India vs. Cipla Ltd., which stress the need for judicial restraint and careful consideration of public interest and the balance of convenience. 5. Referral to a Larger Bench for resolution of key questions: Given the significant issues arising from the non-establishment of the GST Tribunal and the conflicting interim orders, the court referred the matter to a Larger Bench. The key questions for the Larger Bench include: - Whether the interim order dated 04.03.2021 could be passed in conflict with the final judgment dated 09.02.2021. - Whether a direction should be issued to notify the State Bench and Area Benches of the GST Appellate Tribunal in Uttar Pradesh immediately. - The establishment of the State Bench of the GST Appellate Tribunal at Prayagraj and its four Area Benches as per the final judgment dated 09.02.2021. The court concluded by directing that the order and records be placed before the Chief Justice for the constitution of a Larger Bench to ensure that dealers in Uttar Pradesh can avail the statutory remedy of appeal under the CGST/UP GST Act, 2017.
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