GST Tribunal Delay Sparks Court Action, Union of India Ordered to Provide Timeline

The Court intervened due to the non-constitution of the GST Tribunal in Uttar Pradesh, resulting in a rise in writ petitions. The Union of India was directed to provide information on the timeline for establishing the Tribunal. A competent authority from the Ministry of Finance must appear before the Court to address the delay. The hearing scheduled for 16.01.2020 will continue to address this matter.

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Issues:
Challenge to orders passed by appellate authority under the U.P. Goods and Service Tax Act, 2017 due to non-constitution of the GST Tribunal in the State of Uttar Pradesh.

Analysis:
The writ petitions challenge orders passed by the appellate authority under the U.P. Goods and Service Tax Act, 2017, which are appealable before the Goods and Service Tax Tribunal. However, due to the non-constitution of the GST Tribunal in the State of Uttar Pradesh, petitioners are compelled to file writ petitions under Article 226 of the Constitution of India. The Court noted the delay in constituting the GST Tribunal despite various directions and observations made in previous judgments and interim orders at Allahabad and Lucknow. The absence of the GST Tribunal in Uttar Pradesh is causing an influx of writ petitions, burdening the High Court.

The Union of India, despite repeated orders and communications, failed to provide instructions or information regarding the establishment of GST Tribunal benches. While the Tribunal is mandated under Section 109 of the GST Act to provide a forum for aggrieved parties, the delay in constituting benches in Uttar Pradesh is concerning. The Court highlighted that in other states, the GST Tribunal has been established, but Uttar Pradesh lags behind in this regard.

In response to the lack of progress, the Court directed a competent authority not below the rank of Additional Secretary, Ministry of Finance, Government of India, to appear before the Court on a specified date. This appearance is necessary to provide information on the timeline for the constitution of the GST Tribunal in Uttar Pradesh. The petitioners' counsels undertook to serve the Ministry of Finance with the Court's order, and the Union of India's Standing Counsel was tasked with ensuring the competent authority's presence on the designated date.

In conclusion, the Court's intervention was necessitated by the failure to constitute the GST Tribunal in Uttar Pradesh, leading to a surge in writ petitions. The directive for the competent authority to appear aims to address the delay and provide clarity on the establishment of the Tribunal in the state. The upcoming hearing on 16.01.2020 will further address this issue.

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