The present case a Writ Petition was filed before the Hon’ble Kerala High Court praying for directions to expeditiously establish the GST Appellate Tribunal in the State of Kerala in accordance with the provisions of Section 112 of the CGST Act, 2017.
The Hon’ble Kerala High Court addressed two main issues raised by the petitioner. First, regarding the Appeal under Section 112 of CGST Act 2017, the Hon’ble Court observed that the process of establishing the GST appellate tribunal was already initiated and the selection process for the same is presently ongoing. As such the High Court was pleased to pass directions to complete the entire selection process within a period of four months.
Second, the petitioner raised their contention regarding service of notices under Section 169 of the Act, which provides for various methods by which any decision, order, summons, notice or other communication can be served to the taxpayer. The petitioner prayed that Section 169 of the CGST Act 2017 to be rectified by replacing the word “or” with “and”. This change would ensure that notices and orders are served through at least three alternative modes, thereby enhancing compliance with the principles of natural justice. The Hon’ble High Court rejected the second prayer on the basis that such relief is not appropriate for public interest litigation and should be addressed through individual grievance procedures.
W&B Comments: The government had notified the appoint the president of GST Appellate Tribunal and vide Finance bill 2024 it has been proposed that the period of 3 months for filing appeal will start from a date yet to be notified. However, there are innumerable orders pending for appeals before GST Appellate Tribunal but there is no clear timeline specified by the government as to when the GST Appellate Tribunal will become functional, thereby resulting in blockage of working capital of the taxpayers by way of pre-deposits. The present directions of the Hon’ble Kerala High Court directing the government for establishment of GSTAT within specified timeframe of 4 months is a welcome move, more so when the dockets of the High Courts across the country are flooded with the writ petitions in absence of GST Appellate Tribunal. In the event, GSTAT does not become functional within the specified time frame of 4 months, it will be interesting to see whether the Union Government will seek a review of the present order or challenge the same before the Hon’ble Supreme Court.