Legal Loophole Exposed: GST Appeals Stalled as Appellate Tribunal Remains Unformed Since 2017, Interim Relief Granted

HC observed a critical procedural gap in GST appeals due to non-constitution of Second Appellate Tribunal since 2017. Petitioner challenged 1st appellate order and was granted interim relief by depositing full tax demand. Court issued notice to government to explain tribunal's absence and temporarily stayed remaining demand, scheduling further hearing on 31.10.2023.

---

---

Issues:
The issues involved in the judgment are the filing of a writ petition challenging the 1st appellate order under the GST Act due to the non-constitution of the Second Appellate Tribunal.

W.P.(C) No. 29687 of 2023 & I.A. No.14288 of 2023:
The petitioner filed a writ petition challenging the 1st appellate order dated 24.04.2023 by the Joint Commissioner of State Tax(Appeal)Territorial Range, Cuttack-1, Cuttack, citing contravention of Sub-Sections(1) & (4) of Section 107 of the GST Act. The petitioner contended non-liability to pay tax and penalty and highlighted the absence of the Second Appellate Tribunal, which is necessary for filing a second appeal. The delay in preferring the appeal was contested, emphasizing the statutory mandate for the creation of the GST Tribunal to handle such matters.

The Court observed that despite the operationalization of the GST Act since July 1, 2017, the Second Appellate Tribunal has not been constituted, causing pressure on the High Courts. Notice was issued to the opposite parties and the Central Government's counsel to explain the non-constitution of the Second Appellate Court for GST matters. The petitioner was allowed an interim measure to approach the Second Appellate Tribunal by depositing the entire tax demand within fifteen days, with the rest of the demand stayed during the writ petition's pendency.

The application was disposed of, with the matter listed for further hearing on 31st October, 2023.

---