Indian Legal Service Members Exclusion from GST Tribunal Roles Ruled Unconstitutional

The court struck down provisions allowing Indian Legal Service members to be appointed as Judicial Members and administrative members to outnumber judicial members in the GST Appellate Tribunal. It recommended reconsideration of the exclusion of advocates from judicial member appointments but held that there is no vested right for advocates in this regard. The court emphasized judicial independence and the principle of separation of powers, ruling in favor of the petitioners on the specific issues mentioned.

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Issues Involved:
1. Exclusion of advocates from being considered for appointment as Judicial Members in the GST Appellate Tribunal.
2. Eligibility of members of the Indian Legal Service for appointment as Judicial Members.
3. Composition of the GST Appellate Tribunal where administrative members outnumber judicial members.

Issue-wise Detailed Analysis:

1. Exclusion of Advocates:
The petitioners challenged Section 110(1)(b) of the CGST Act, arguing that excluding advocates from being eligible for appointment as Judicial Members violates Article 14 of the Constitution. They contended that advocates with over ten years of experience are eligible for similar positions in other tribunals like the Income Tax Appellate Tribunal and CESTAT, and there is no justification for their exclusion. The court held that there is no vested right for advocates to be considered for such appointments unless explicitly provided by law. However, it recommended that the Parliament reconsider the exclusion of advocates, given their expertise and the existing practice in other tribunals.

2. Eligibility of Indian Legal Service Members:
The petitioners argued that Section 110(1)(b)(iii), which allows members of the Indian Legal Service with at least three years of experience as Additional Secretary to be appointed as Judicial Members, is contrary to the Supreme Court's ruling in Union of India vs. R. Gandhi. The court agreed, referencing the Supreme Court's decision that only judges and advocates should be considered for judicial appointments in tribunals, and struck down the provision allowing Indian Legal Service members to be appointed as Judicial Members.

3. Composition of the GST Appellate Tribunal:
The petitioners challenged the composition of the tribunal under Sections 109(3) and 109(9) of the CGST Act, which prescribes one Judicial Member and two Technical Members (one from the Centre and one from the State). They argued that this composition violates Articles 14 and 50 of the Constitution, as it allows administrative members to outnumber judicial members, potentially compromising the tribunal's independence and impartiality. The court agreed, emphasizing the need for judicial independence and the principle of separation of powers. It struck down the provisions allowing administrative members to outnumber judicial members in the tribunal.

Conclusion:
The court struck down Section 110(1)(b)(iii) of the CGST Act, which allowed Indian Legal Service members to be appointed as Judicial Members, and Sections 109(3) and 109(9) of the CGST Act, which allowed administrative members to outnumber judicial members in the tribunal. It rejected the argument that excluding advocates from being considered for appointment as Judicial Members is unconstitutional but recommended that the Parliament reconsider this exclusion. The writ petitions were allowed to the extent mentioned, with no costs.

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