Importance of Appellate Tribunal under U.P. GST Act stressed by Court, interim protection granted to petitioner

The Court emphasized the necessity of constituting the appellate Tribunal under the U.P. GST Act and directed the Principal Secretary to provide details on its non-establishment. An interim protection was granted to the petitioner, releasing seized goods and vehicle upon furnishing a bank guarantee. The Court highlighted the importance of the Tribunal's formation even a year after GST introduction, considering challenges faced by petitioners in seizure and penalty proceedings due to the absence of the Tribunal. The absence of the appellate Tribunal by the Union of India raised concerns, leading the Court to request an affidavit detailing reasons for non-establishment and actions taken.

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Issues:
1. Constitution of the appellate Tribunal under the U.P. GST Act.
2. Seizure proceedings and penalty under Section 129 (3) of the U.P. GST Act.
3. Appeal process under Section 107 (1) of the U.P. GST Act.
4. Non-establishment of the appellate Tribunal by the Union of India.

Analysis:
1. The petitioner challenged the proceedings under Section 129 (3) of the U.P. GST Act, contending that the appellate Tribunal required for appeals under Sections 109, 110, 111, and 112 of the Act had not been constituted by the respondent State or the Union of India. The Court noted the necessity of the Tribunal's constitution and directed the Principal Secretary (Tax and Institutional Registration) to provide details on the non-establishment of the Tribunal and steps taken. An interim protection was granted to the petitioner, releasing the seized goods and vehicle upon furnishing a bank guarantee of Rs. 5,00,000. The Court emphasized the importance of the Tribunal's formation even a year after the GST introduction.

2. The petitioner, a seller, faced seizure and penalty after goods were intercepted without an E-way bill during transportation. The penalty order under Section 129 (3) was upheld by the Appellate Authority, directing the petitioner to deposit the disputed amount. The petitioner appealed under Section 107 (1) of the U.P. GST Act, challenging the penalty. The High Court, considering the absence of the appellate Tribunal, provided interim relief by releasing the goods upon a bank guarantee, pending further proceedings.

3. The appeal process under Section 107 (1) of the U.P. GST Act was invoked by the petitioner against the penalty order upheld by the Appellate Authority. The Court acknowledged the petitioner's contentions regarding the absence of the appellate Tribunal and directed the respondent to provide necessary details on the Tribunal's establishment. The petitioner was granted interim protection, allowing the release of seized goods and the vehicle upon furnishing a bank guarantee.

4. The non-establishment of the appellate Tribunal by the Union of India was a crucial issue highlighted by the Court. Despite the provisions in the U.P. GST Act for the Tribunal's constitution, the absence of the Tribunal raised concerns. The Court directed the Principal Secretary to submit an affidavit detailing the reasons for the Tribunal's non-establishment and the actions taken by the authorities. The Court emphasized the importance of the Tribunal's formation for effective adjudication of GST-related matters.

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