2019 (7) TMI 947 - HC - GST

Efficient GST Tribunal Formation Urged by Court for Streamlined Dispute Resolution

The Court emphasized the importance of promptly constituting the GST Tribunal by the Union and State Governments to streamline the adjudication process ... Collective failure to constitute the GST Tribunal which was their solemn duty under the GST Act, 2017 - HELD THAT:- Since the matter is engaging the attention of the Division Bench of this Court at Allahabad as well and since the stand of the Union is still not clear, list this matter after two weeks. Issues:Failure to constitute GST Tribunal by Union and State Governments. Pending writ petitions due to non-constitution of Tribunal.Analysis:The judgment delivered by Justice Saumitra Dayal Singh addresses the issue of the failure of the Union and State Governments to constitute the GST Tribunal as mandated under the GST Act, 2017. The petitioner was compelled to file a writ petition due to this failure, leading to a multitude of similar petitions burdening the Court. The absence of the Tribunal results in pending cases that could have been addressed by the Tribunal through statutory appeals, alleviating the Court's caseload. The Central Government Counsel informed that a Division Bench is seized with this issue, scheduled for a hearing on a specific date. Additionally, the Union of India is contemplating its response following a previous decision in a PIL, indicating a potential compliance with the order or filing an SLP. The State Government, represented by the Standing Counsel, highlighted its challenges in constituting the Tribunal, emphasizing the dependence on the Union's actions for its establishment. Due to the ongoing consideration of this matter by the Division Bench and the Union's stance remaining unclear, the Court decided to list the case for a further hearing after two weeks.This judgment underscores the significance of promptly constituting the GST Tribunal by the Union and State Governments to streamline the adjudication process and prevent the accumulation of writ petitions before the Court. The Court's intervention aims to address the systemic issue of non-constitution of the Tribunal, emphasizing the need for expeditious action by the concerned authorities to establish the Tribunal and facilitate the resolution of disputes through the statutory framework provided under the GST Act. The Court's decision to defer the case for a subsequent hearing reflects a cautious approach to allow for clarity on the Union's position and the progress in addressing the issue raised regarding the Tribunal's establishment. The judicial scrutiny of the matter highlights the Court's role in ensuring the effective implementation of statutory provisions and the timely functioning of specialized tribunals to enhance the efficiency and efficacy of the dispute resolution mechanism in matters related to GST.