GST appellate court fee levy upheld as non-discriminatory under Article 14

An additional 1% court fee under Section 76(1) of the Kerala Court Fees and Suit Valuation Act, 1959 was examined for application to appeals under the GST appellate mechanism. The challenge alleged violation of Article 14 on the ground of discriminatory classification and unequal burden on GST appellants. Applying the principle that fiscal differentiation is unconstitutional only if shown to be unreasonable, biased, or discriminatory without justification, the Court considered the levy in the context of the GST appellate scheme under Section 108 of the Kerala State Goods and Services Tax Act, 2017. It found no arbitrariness or unconstitutional discrimination in the notification prescribing the fee and upheld the levy as valid.

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Issues: Whether the additional court fee of 1% levied under Section 76(1) of the Kerala Court Fees and Suit Valuation Act, 1959 could be applied to appeals filed under the GST appellate mechanism, and whether such levy was violative of Article 14 of the Constitution of India.

Analysis: The challenge turned on whether the impugned levy created an impermissible classification or discriminatory burden on GST appellants. The Court applied the settled principle that legislative or fiscal differentiation is not unconstitutional unless it is shown to be founded on unfavourable bias or is discriminatory without reason. The levy was examined in the context of the GST appellate scheme under Section 108 of the Kerala State Goods and Services Tax Act, 2017 and the constitutional limitations governing fiscal measures. The Court found no unconstitutional discrimination or arbitrariness in the notification prescribing the additional fee.

Conclusion: The levy of additional court fee was held to be valid and not violative of Article 14 of the Constitution of India, and the challenge was rejected.

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