2019 (7) TMI 1071 - HC - GST

Location of State Bench under GST Act clarified by Allahabad High Court

The Allahabad High Court addressed the issue of determining the location of the State Bench of the Tribunal under Section 109(6) of the Central Goods ... Interpretation of Section 109(6) of the Central Goods & Services Tax Act, 2017 - State Bench of the Appellate Tribunal - Area Benches of the Appellate Tribunal - Central Government's power to determine the location of State Bench - Notification of Appellate Tribunal to act for another State or Union territoryInterpretation of Section 109(6) of the Central Goods & Services Tax Act, 2017 - Central Government's power to determine the location of State Bench - Area Benches of the Appellate Tribunal - Scope of authority under Section 109(6) regarding who determines the location of the State Bench and area benches of the Goods and Services Tax Appellate Tribunal. - HELD THAT: - The Court, on a plain reading of Section 109(6), held that determination of the location of the State Bench of the Appellate Tribunal lies within the domain of the Central Government. The role of the State Government is confined to making requests for and determining the place of Area Benches within the State; it does not extend to deciding the place of the State Bench itself. Consequently, the decision as to the State Bench's location is for the Central Government to take, pursuant to the notification power conferred by Section 109(6).Determination of the State Bench location is a Central Government function; the State Government's role is limited to matters relating to Area Benches.Notification of Appellate Tribunal to act for another State or Union territory - Proceedings remitted for Central Government decision - Direction to the Central Government to proceed in accordance with Section 109(6) and to report the decision; treatment of the earlier Lucknow Bench order. - HELD THAT: - The Court observed that the Lucknow Bench judgment relied upon in earlier proceedings did not appear to have considered the statutory provisions of Section 109(6), and was prima facie deficient on that count. In consequence, the Court directed the Central Government to proceed in accordance with Section 109(6) of the CGST Act and to communicate its decision. The Central Government was granted three weeks to file a status report, and the matter was posted for further consideration on the listed date. This constitutes a remand to the executive for exercise of its statutory function rather than an adjudication on the merits as to the appropriate location.Central Government to act in accordance with Section 109(6), file a status report within three weeks, and the matter listed for further hearing.Final Conclusion: The High Court held that the Central Government alone is empowered to determine the location of the State Bench under Section 109(6) CGST Act, confined the State's role to area benches, observed that an earlier Lucknow Bench order did not consider these provisions, and directed the Central Government to proceed accordingly and file a status report within three weeks; the matter was listed for further hearing. Issues: Determination of location of State Bench of the Tribunal under Section 109(6) of Central Goods & Services Tax Act, 2017In the judgment delivered by the Allahabad High Court, the court addressed the issue of determining the location of the State Bench of the Tribunal under Section 109(6) of the Central Goods & Services Tax Act, 2017. The petitioner's counsel highlighted the specific provisions of the Act, emphasizing that the State Government's role is limited to deciding the place of area benches, while the determination of the State Bench's location falls under the jurisdiction of the Central Government. The court noted that the matter regarding the location of the State Bench was under consideration by the Central Government. The court also referred to a previous judgment of the Lucknow Bench, pointing out that the provisions of Section 109(6) were not adequately considered in that judgment. The court directed the Central Government to proceed in accordance with Section 109(6) of the CGST Act, 2017 and scheduled the matter for further hearing on a specified date.Furthermore, the High Court Bar Association proposed that the State Bench could be housed in a premises in Allahabad due to its central location, larger territorial jurisdiction, and ample parking space. The proposal received support from the Bar members. The Assistant Solicitor General of India was granted three weeks to file a status report regarding the decision taken by the Central Government in this regard.In conclusion, the judgment focused on the delineation of responsibilities between the State and Central Governments in determining the location of the State Bench of the Tribunal under the CGST Act, 2017. It highlighted the need for adherence to statutory provisions and directed the Central Government to take appropriate action in line with the law. The proposal for housing the State Bench in Allahabad was also considered favorably, pending further updates from the Central Government.