Systemic Delay in GST Appellate Tribunal Challenges Tax Order, Provides Interim Relief for Petitioner Under Procedural Fairness

HC allowed petitioner's challenge to GST tax order, noting systemic delay in establishing 2nd Appellate Tribunal since 2017. Interim relief granted: petitioner may approach Tribunal after depositing tax demand, with partial stay on remaining demand. Notice issued to Central Government to address Tribunal's non-constitution, with further hearing scheduled.

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Issues involved: Challenge to 1st appellate order under GST Act, delay in constituting 2nd Appellate Tribunal, liability to pay tax and penalty, creation of GST Tribunal.

Summary:
The petitioner challenged the 1st appellate order dated 31.03.2023 by the Joint Commissioner of State Tax(Appeal) CT & GST, which rejected the appeal on grounds of contravention to Section 107 of the GST Act. The petitioner contended non-liability to pay tax and penalty, citing the absence of a constituted 2nd Appellate Tribunal. The Standing Counsel argued against condoning the delay in appeal beyond four months and emphasized the petitioner's liability to pay tax. The Court noted the absence of the Tribunal since the GST Act's enforcement in 2017, urging the Central Government's duty to establish the GST Tribunal for adjudication.

Notice was issued to the opposite parties and the Central Government's counsel to address the delay in constituting the 2nd Appellate Court for GST matters. The Standing Counsel accepted the notice, and timelines were set for filing replies. An interim measure allowed the petitioner to approach the 2nd Appellate Tribunal upon depositing the entire tax demand within fifteen days, staying the rest of the demand during the writ petition's pendency. The interim application was disposed of, and the matter was listed for further hearing on 11th October, 2023.

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