GST: PIL filed in Rajasthan HC Challenging Vires of AAR & AAAR [Read Petition]

AAR - Rajasthan High Court - Taxscan

A Public Interest Litigation ( PIL ) has been filed before Rajasthan High court challenging provisions of Central and State GST Acts regarding the constitution of  ‘Authority for Advance Ruling’ ( AAR ) and Appellate Authority for Advance Ruling ( AAAR ).

The bench comprising of Chief Justice Pradeep Nandrajog and Justice Vinit Kumar Mathur has issued notice returnable after four weeks.

Petitioner Advocate Sharad Kothari pressed on the arbitrary way the AAR / AAAR route was used to subvert the judicial mechanism and doctrine of separation of power.

In a petition filed by Abhishek Chopra, who is a chartered accountant and GST expert, contended that it is not possible for AAR/AAAR to function judiciously and independently in absence of Judicial Member as was the concept in erstwhile Custom, Excise and Service tax law.

The petition also contends that the provisions are ultra vires Article 14 and 50 of Constitution of India. It is also said that the Supreme Court has settled this issue on many occasions and recently reiterated the said ratio in R Gandhi Vs UOI judgment wherein the constitution of NCLT was held to be ultra vires and the same judgement had been relied upon in the case of Finance Act,2017 wherein the Government has accepted the error and filed affidavit for necessary changes.

Petitioner has challenged the vires of Constitution of AAR and AAAR, also the petitioner practising extensively in GST apprised that this defective structure leans in favour of bureaucracy and goes against the basic independent intent of judiciary. Chopra said “It is for the GST Council and Government to decide the fate of ambiguous GST law and its independence per se. “

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