Allahabad HC expresses displeasure over long delay of setting up of GSTAT [Read Order]

The Allahabad High Court has expressed displeasure for the long delay of not setting up of Goods and Services Tax Appellate Tribunal (GSTAT).

A pharmaceutical company filed a petition and sought to constitute the tribunal.

The court had sought answers from the central and state government.

The State Government submitted that they had sent a proposal to the GST Council on 21 February 2019 in which the bench of the state tribunal suggested to set up 20 area benches in Lucknow and 16 districts.

The State Government also submitted that judgment in the Bar Association case, the Supreme Court, the court ordered the state government that where there is a head bench of the High Court, Tribunal should become the same. On which the State Government sent the revised proposal to the GST Council on 15 March 2019. In which it was suggested to constitute Pradhan Peeth in Allahabad and four Area Chairs in different cities.

A division bench comprising of Justice Bharti Sapru and Justice R.R Agrawal observed that a provision has been made in Section 109 for the creation of the GSTAT. The persons aggrieved by the order of the First Appellate Authority have no other remedy than to file a writ petition before this Court, in absence of GSTAT.

Section 109 elaborates as General provision as to statutory corporations.

(1) Save as otherwise expressly provided by the foregoing provisions of this Part, where anybody corporate has been constituted under a Central Act, State Act or Provincial Act for an existing State the whole or any part of which is by virtue of the provisions of Part II transferred to any other existing State or to a new state, then, notwithstanding such transfer, the body corporate shall, as from the appointed day, continue to function and operate in those areas in respect of which it was functioning and operating immediately before that day, subject to such directions as may from time to time be issued by the Central Government, until another provision is made by law in respect of the said body corporate.

(2) Any directions issued by the Central Government under sub-section (1) in respect of any such body corporate shall include a direction that any law by which the said body corporate is governed shall in its application to that body corporate have effect subject to such exceptions and modifications as may be specified in the direction.

The division bench also further stated that an assessee cannot be left remediless despite statutory safeguards having been provided by the legislature.