Petition Filed in Supreme Court Seeks Timely Appointment of Judicial and Technical Members for GST Tribunals

Petition Filed in Supreme Court Seeks Timely Appointment of Judicial and Technical Members for GST Tribunals

A Public Interest Litigation (PIL) has been moved in the Supreme Court of India, urging the Central Government to expedite the process of appointing judicial and technical members to the Goods and Services Tax (GST) Appellate Tribunal. Filed by Advocate Anoop Prakash Awasthi, the petition seeks to operationalize the tribunal across India, ensuring a functional and streamlined process for GST-related disputes. The petitioner also requests the identification of suitable premises, development of a website, and allocation of budgets to facilitate the smooth functioning of these tribunals.

Long-Pending Establishment of the GST Appellate Tribunal

The Goods and Services Tax (GST) was implemented in India in 2017, marking one of the most significant indirect tax reforms in the country’s history. However, one major issue that remains unresolved since the enactment of the Central Goods and Services Tax Act, 2017 (CGST Act) is the establishment of the GST Appellate Tribunal. As a result, taxpayers have been left with limited avenues for judicial recourse, having to approach High Courts under writ jurisdiction for GST-related disputes. This, in turn, has placed an unnecessary burden on High Courts, increasing the litigation backlog.

The GST Appellate Tribunal is intended to serve as the primary appellate body for disputes arising under GST law, providing a dedicated forum for efficient adjudication. However, the lack of its operationalization has been a persistent issue. Despite the process of constituting the Tribunal having started in late 2023, bureaucratic delays have hampered its implementation, leaving taxpayers without an effective appellate mechanism.

Petition’s Core Demands

The petitioner, Anoop Prakash Awasthi, has outlined several key demands in his PIL, aimed at addressing the prolonged delay in operationalizing the Tribunal. These demands include:

1. Appointment of Judicial and Technical Members: The petition urges the government to complete the process of recruiting qualified judicial and technical members for the GST Appellate Tribunal. This process should be expedited to ensure that the Tribunal is functional before December 31, 2024, or as early as possible.

   

2. Identification of Premises for Benches: The establishment of GST Appellate Tribunal benches across various states is a key concern. The petitioner has requested that premises be identified and prepared for the operation of these benches, ensuring accessibility for litigants nationwide.

3. Development of a Website and Budget Allocation: To ensure efficient operations, the petitioner demands the development of a dedicated website for the GST Appellate Tribunal. Additionally, an adequate budget should be allocated to cover operational costs and ensure the smooth running of the Tribunal.

4. Time-Bound Operationalization: The petition emphasizes the need for the Tribunal to be made operational in a time-bound manner, especially at its National Bench in Delhi and 31 other locations across India. The establishment of the National Bench in Delhi is crucial to setting the framework for other regional benches.

The Legal Framework: Section 109 of CGST Act

Section 109 of the Central Goods and Services Tax (CGST) Act, 2017, under Chapter XVIII, empowers the Central Government to constitute the GST Appellate Tribunal and its benches across India. This is done on the recommendation of the GST Council, which oversees GST policy matters. The Tribunal’s National Bench is to be established in New Delhi, while regional and state benches are to be operationalized across various states.

While the chairperson of the GST Appellate Tribunal, Justice (Retd.) Sanjay Kumar Mishra, was appointed on May 6, 2024, little progress has been made in recruiting members or operationalizing the Tribunal since then. According to the petitioner, the delay in setting up the Tribunal is a significant failure, especially considering that the Revenue Secretary announced in February 2024 that the Tribunal would likely begin operations by July or August 2024. However, as of September 2024, the Tribunal is still not functional.

Consequences of Delayed Implementation

The absence of a fully functional GST Appellate Tribunal has several negative consequences for the country’s tax ecosystem. These include:

- Overburdened High Courts: High Courts are currently handling a significant number of GST-related cases, leading to delays in justice. Without a dedicated Tribunal, GST-related litigation is clogging the court system, reducing judicial efficiency.

  

- Lack of Specialized Adjudication: The GST Tribunal is intended to handle complex tax disputes that require specialized knowledge. Without this Tribunal, such matters are being dealt with by generalist courts, which may not have the requisite expertise in GST laws.

- Prolonged Dispute Resolution: The delay in setting up the Tribunal has caused unnecessary delays in resolving tax disputes, leading to prolonged litigation for businesses and individuals involved in GST-related cases.

Petition’s Call for Action

The petition filed by Anoop Prakash Awasthi highlights the urgency of setting up the GST Appellate Tribunal. The petition emphasizes that the appointment of judicial and technical members must be a priority for the government. Furthermore, it stresses the need for setting up the required infrastructure, both physical and digital, to ensure the Tribunal’s smooth functioning.

The Tribunal’s establishment would not only ease the burden on High Courts but also provide speedier justice for GST disputes, leading to a more efficient tax administration system in India. 

Conclusion

The operationalization of the GST Appellate Tribunal is long overdue, and this PIL filed in the Supreme Court brings the issue to the forefront. By calling for the appointment of judicial members, identification of premises, and the development of a comprehensive online presence, the petition aims to resolve the seven-year delay in setting up this essential tribunal. If acted upon, this could significantly improve the GST dispute resolution process, providing businesses and taxpayers with a faster, more efficient adjudicatory mechanism.