The Supreme Court has directed the Central Government to provide a report explaining the reasons behind the continued non-functionality of the Goods and Services Tax ( GST ) Appellate Tribunal.
Justices J B Paridawala and Manmohan have asked that “We would like to first know at the earliest why the Goods and Services Tax Appellate Tribunal has not been made functional till this date. We want a report in the aforesaid regard by the next date of hearing.”
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The apex court’s order came during the hearing of a petition where the petitioner sought exemption from filing a certified copy of the impugned order, which was duly allowed by the court.
The court observed that the High Court had declined to entertain the petitioner’s writ petition on the grounds that an efficacious remedy was available under Section 112 of the Central Goods and Services Tax Act, 2017.
However, the Supreme Court highlighted the practical impediment faced by the petitioner, as the GST Appellate Tribunal, which is the prescribed appellate authority, is yet to become operational.
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During the proceedings, Mr. Rupesh Kumar candidly admitted that the tribunal is not functional. He suggested that taxpayers intending to appeal can do so by making a pre-deposit of 10% of the disputed tax liability.
The court, however, expressed its dissatisfaction with the prolonged delay in establishing the tribunal and directed the government to submit a detailed report justifying the delay. The report is to be submitted within three weeks.
Additionally, the apex bench noted that the petitioner was compelled to approach the High Court due to the Department’s demand for repayment of an amount previously refunded to the assessee. Accordingly, the Supreme Court stayed the operation of the Department’s order demanding repayment of the refunded amount until further orders.
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The matter has been listed for further hearing, with notice issued to the respondents, and service of notice waived by the counsel for the respondents.
Senior counsel Mr. Kavin Gulati appeared on behalf of the petitioner, while Senior counsel Mr. Rupesh Kumar represented the respondents.
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