TaxTMI 
TaxTMI 
The Government is a highly powerful machinery which had the real force to operationalize GSTAT as early as 2020 even before the outbreak of COVID which option was missed. The efforts made to implement GST as on 01/07/2017 at 00.00.00 hours prove the powers of the Government. The provisions pertaining to GSTAT were there as on 01/07/2017 itself but the Government choose a very slow path in establishing the tribunal in time. So far as the judicial members are concerned, there were no issues whereas the technical members were in two categories Central and State. The initial proposal was to constitute benches with a composition of three members consisting of one judicial and two technical members one each from Centre as well as State. However, this proposal could not materialize as there were cases requiring a minimum number of judicial members in each bench, if not more.
This proposal could have been easily accepted and implemented but the Government whether incidentally or intentionally waited for this issue to settle. Only after Supreme Court intervention, things started to move faster. One of the taxpayer Team Computers (P) Limited based at Delhi applied for refund of ITC and also received the same. However, the review order was passed on 24/11/2023 proposing rejection of ITC against which Team computers preferred the first appeal under section 107. The OIA was passed on 21/05/2024 rejecting the ITC based on which jurisdictional authorities attached the bank account also. Aggrieved, the taxpayer preferred a writ before the Delhi High Court in M/s. Team Computer Private Limited. Versus Union Of India & Ors. - 2024 (8) TMI 1499 - DELHI HIGH COURT. The matter came up for hearing on 22/08/2024 before the Division Bench. The Division Bench held that there is a remedy by way of appeal before the Goods and Service Tax Appellate Tribunal under section 112 and accordingly dismissed the writ.
It may be noted here that the High Court has indirectly helped all the taxpayers all over India to get GSTAT in place at least on the day on which GST law enters 10th year in India. Though the Honorable president of GSTAT was appointed as on 06/05/2024, the press release of which reads as 'Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman administered the oath of integrity and secrecy to Justice (Retd.) Sanjaya Kumar Mishra as the President of the GST Appellate Tribunal (GSTAT), in New Delhi, today. Justice (Retd.) Mishra's appointment marks the beginning of the operationalisation of the GSTAT, a crucial body for resolving GST-related disputes'.
However as on 22/08/2024 when the Delhi High Court passed the above order, the other members of the Tribunal were not appointed but they were appointed only during August 2025. This happened due to the Team Computers (P) Limited filing a special leave petition before the Supreme Court which came up for hearing in Team Computers Private Limited Versus Union of India & Ors. - 2024 (12) TMI 875 - SC Order wherein the Supreme Court made very strong observations as on 13/12/2024 as
'6. We would like to first know at the earliest why the Goods and Services Tax Appellate Tribunal has not been made functional till this date.
7. We want a report in the aforesaid regard by the next date of hearing.
8. Issue notice, returnable in three weeks.
9. Mr. Rupesh Kumar, the learned Senior counsel waives service of notice for and on behalf of the respondents'.
In my view, the aggressiveness on setting up as well as making operational of the GSTAT is consciously presence as of now as things have started moving in the fast track in 2025.Members appointment were notified only during 2025. Effective hearing is most likely going to start in several benches as on 01/07/2026. By end on December 2026, all the benches may be fully operational giving required relief to the taxpayer.
As there was an obligation on the part of the Central Government to answer the Supreme Court, there are so many developments in the positive direction. However, I was eager to see the reply as furnished the Government to the Supreme Court in line with the requirements but the case is still pending before the Court even after 18 months as on date though the cases were posted on several dates such as 24/01/2025, 19/05/2025 17/07/2025 etc. But what is required is happening after the High Court rejection suggesting appeal before GSTAT which has helped us all to see the light of the day as on date.
The fact that around 20,700 e appeals have been filed so far before GSTA gives us the ray of hope on GSTAT functioning. The few orders passed so far on core issues other than anti profiteering also gives us huge expectations that several issues shall be duly addressed in the days to come whereby the decisions may be used by the tax professionals to settle issues at adjudication or first appeal level itself.
This article is concluded with huge expectations from the field formations to pass reasoned orders hereafter as any adverse orders passed in violation of any of the sections such as 75 shall definitely be settled in favour the taxpayer as happened so far through various writs in high courts. This approach may help the officials from the orders passed by them being set aside or even quashed by Tribunal later. Approaching GSTAT is much simpler when compared with a writ before high court and hence officers at adjudication may pass qualitative orders and officers at first appeal may render real justice to avoid the matter reaching GSTAT (unnecessarily) to settle in favour of the taxpayer.