The Allahabad High Court directed the Central Government to create a State Bench of Goods and Service Tax Appellate Tribunal (GSTAT) at Prayagraj and Area Benches at Ghaziabad, Lucknow, Varanasi, and Agra.
The impugned orders passed in the batch of writ petitions are appealable before the Appellate Tribunal under Section 112 of the CGST Act or UPGST Act but the petitioners have filed these writ petitions for reason that the Tribunal under Section 109 of the CGST Act has not been constituted so far by the Government, i.e. the Central Government, under Section 109 of the CGST Act.
Since the challenge to the impugned orders relates to questions of fact and the Appellate Tribunal is the last fact finding authority, therefore, it was left open for all the petitioners to challenge the impugned orders before the Appellate Tribunal under Section 112 of the CGST Act/ U.P. GST Act as and when the State Bench and Area Benches of the Appellate Tribunal are constituted in the State of Uttar Pradesh.
Section 109(6) of the CGST Act mandates that the Central Government shall, by notification, specify for each State or Union Territory except for the State of Jammu and Kashmir, a State Bench of the Appellate Tribunal for exercising the powers of the Appellate Tribunal within the concerned State or Union Territory.
Under the second provision to sub-Section (6) of Section 109 of the CGST Act, area benches in that State shall be constituted by the Central Government in such number as may be recommended by the council on receipt of a request from the concerned State Government.
The third proviso to sub-Section (6) of Section 109 of the CGST Act provides that the Government may on receipt of a request from any State, or on its own motion for a Union Territory notify the Appellate Tribunal in a State to act as the Appellate Tribunal for any other
The sub-section (6) of Section 109 of the CGST Act clearly mandates that “State Bench of the Goods and Services Tax Appellate Tribunal” shall be constituted and notified by the Central Government but the Area Benches in such number as may be requested by the concerned State Government, may be constituted by the Central Government on the recommendation of the Council.
The division bench of Justice Surya Prakash Kesarwani and Justice Dr. Yogendra Kumar Srivastava while issuing the directions noted that dealers in the State of Uttar Pradesh falling under the CGST Act or U.P. GST Act and aggrieved with the orders of first appellate authority under Section 107, have been left remediless inasmuch as Appellate Tribunal under the Act is not available in the State of Uttar Pradesh for preferring appeals under Section 112 of the CGST Act/ U.P. GST Act.
Firstly, the court directed that the GST Council shall forward its recommendation of Agenda Item No.6 of the 39th Meeting held on March 14, 2020 to the Central Government within two weeks from today.
Secondly, the Central Government shall, within next four weeks, specify by notification in terms of Section 109 (6) of the CGST Act the “State Bench” at Prayagraj (Allahabad), of the Goods and Services Tax Appellate Tribunal and four Area Benches at Ghaziabad, Lucknow, Varanasi and Agra, in the State of Uttar Pradesh for exercising the powers of the Appellate Tribunal.
Thirdly, the respondent authorities shall ensure that the State Bench and the Area Benches of the Appellate Tribunal (Goods and Service Tax Appellate Tribunal) in the State of Uttar Pradesh are made functional as far as possible from April 1, 2021.
Lastly, the court directed that till expiry of the period of limitation for filing appeals under Section 112 of the CGST Act after establishment of the State Bench and Area Benches or till appeals are filed, whichever is earlier, no coercive action shall be taken against the petitioners herein pursuant to the impugned orders passed by the first authority or the first appellate authority.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan AdFree. We welcome your comments at info@taxscan.in
