Upheld: Petitioner challenges lack of Tribunal under U.P.G.S.T. Act. GST Council directed to recommend

The court upheld the rejection of a refund application by the Additional Commissioner Grade-2 (Appeal)- First Commercial Tax Noida, based on an order by the First Authority. The petitioner challenged the lack of a constituted Tribunal under the U.P.G.S.T. Act. The judgment directs the GST Council to recommend the establishment of an Appellate Tribunal in Uttar Pradesh, emphasizing its importance as the final fact-finding authority. The respondents are given three weeks to file counter affidavits detailing compliance with setting up the Tribunal. Failure to comply may result in summoning of authorities. The case is scheduled for further proceedings in three weeks to monitor progress towards establishing the Tribunal.

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Issues:
Challenge to order rejecting refund application; Constitution of Tribunal under U.P.G.S.T. Act; Remedies for dealers in Uttar Pradesh under CGST Act/U.P. GST Act; Compliance with directions for setting up Appellate Tribunal in Uttar Pradesh.

Analysis:
The judgment pertains to a challenge against an order dated 6.8.2021, upholding the rejection of a refund application by the Additional Commissioner Grade-2 (Appeal)- First Commercial Tax Noida, based on an order dated 22.7.2019 by the First Authority. The petitioner contends that no Tribunal has been constituted by the Central Government as required under Section 109 of the U.P.G.S.T. Act, leading to the filing of this writ petition.

In response, the learned counsel for the respondents, including the Central Board of Indirect Taxes and Customs, are granted three weeks to file their counter affidavits. Reference is made to a judgment of a Division Bench in the matter of Torque Pharmaceuticals Pvt. Ltd. Vs. Union of India, highlighting the lack of an Appellate Tribunal in Uttar Pradesh for dealers under the CGST Act/U.P. GST Act. The judgment directs the GST Council to recommend the establishment of a State Bench and Area Benches of the Appellate Tribunal in Uttar Pradesh, specifying locations and operational timelines.

The judgment emphasizes the importance of the Appellate Tribunal as the last fact-finding authority and notes the prejudice faced by aggrieved persons due to its unavailability. The respondents are required to detail their compliance with the directions for setting up the Appellate Tribunal in Uttar Pradesh in their counter affidavits. Failure to provide a satisfactory response may lead to summoning of the concerned authorities. The counter affidavits must specify the names and designations of the authorities responsible for ensuring compliance with the directions.

The case is listed for further proceedings after three weeks, indicating the court's intent to monitor the progress towards establishing the Appellate Tribunal in Uttar Pradesh and ensuring the availability of remedies for aggrieved parties under the CGST Act/U.P. GST Act.

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