Gujarat HC Expresses Displeasure over Non-Functionality of GST Tribunal Despite Constitution, Seeks Govt. Response [Read Order]

The Gujarat High Court has expressed strong displeasure over the continued non-functionality of the Goods and Services Tax (GST) Appellate Tribunal despite its formal constitution, noting that assessees are being forced to approach the High Court even when an alternate statutory remedy exists.

A writ petition was filed by M/s Sabarkantha District Co-operative Milk Producers Union Ltd. (Sabar Dairy) and another, challenging an order dated October 7, 2025. At the outset, the bench of Justice A.S. Supehia and Justice Pranav Trivedi pointed out that the petitioner had an alternate remedy of filing an appeal before the dedicated Tribunal.

The Court noted that the Tribunal had been constituted pursuant to a notification dated September 17, 2025. However, counsel Amal Paresh Dave and Paresh M Dave for the petitioner submitted that the Tribunal was not functional as on date.

On behalf of the State, AGP Pooja Ashar submitted that although members of the Tribunal had been appointed and premises had also been identified, the Tribunal had still not been made operational.

Taking note of the situation, the Division Bench observed that despite the constitution of the Tribunal, it was not fully functional, resulting in repeated instances where the High Court is required to entertain matters that should ordinarily be adjudicated by the Tribunal.

The Court emphasised that once a Tribunal is constituted, it must be made functional at the earliest so that litigants are not compelled to bypass the statutory appellate mechanism and become constrained to approach the High Court instead.

Accordingly, the Gujarat High Court issued notice and directed the respondent governmental bodies to apprise it of the status of the Tribunal, specifically concerning whether the Tribunal has been made functional. The Court also permitted the respondents to file an affidavit addressing both the functionality of the Tribunal and the merits of the case, if they so desire.

Additionally, the Court directed that necessary data regarding filing of applications before the Tribunal be placed on record by the next date of hearing on March 27, 2026.

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