Bharatiya Vitta Salahkar Samiti & Anr. vs. Union Of INDIA & Ors.

Held

The Court did not decide on the merits of the petitioners' contentions regarding the validity of Sections 110 and 109 of the CGST Act. Instead, the Court noted the petitioners' submission that the Madras High Court had already struck down certain portions of these sections and that the petitioners had additional grounds for challenge. Given that the provisions had been set aside by another High Court and considering the upcoming GST Council meeting to discuss the Appellate Tribunal's working, the petitioners sought to withdraw their petitions with liberty to file afresh. The Court allowed this withdrawal, explicitly stating that all rights and contentions of the parties were reserved and that the order should not be construed as an expression of opinion on the merits of the case. No specific issue was expressly left undecided, as the petitions were withdrawn.

Facts

The petitioners, Bharatiya Vitta Salahkar Samiti & Anr., filed two writ petitions (W.P.(C) 6900/2018 and W.P.(C) 3247/2019) before the Delhi High Court challenging certain provisions of the Central Goods and Services Tax Act, 2017 (CGST Act). The petitions were filed against the Union of India and other respondents. The Court noted that the Madras High Court, in Revenue Bar Association v. Union of India and V. Vasanthakumar v. Union of India, had previously struck down certain portions of Sections 110 and 109 of the CGST Act. The petitioners stated they had additional grounds for challenging these provisions. The respondent indicated that the GST Council was scheduled to consider provisions related to the working of the GST Appellate Tribunal in its June 2023 meeting.

Key Issues

1. Whether certain portions of Sections 110 and 109 of the Central Goods and Services Tax Act, 2017, are liable to be struck down on grounds in addition to those relied upon by the Madras High Court? Petitioner's contention: The petitioners argued that there were further grounds for striking down the said provisions, beyond those already considered by the Madras High Court. They sought to withdraw the petitions with liberty to refile, depending on the steps taken by the respondent regarding the implementation of appeal provisions to the Appellate Tribunal. Respondent's contention: The respondent informed the Court about the upcoming 50th GST Council meeting in June 2023, where provisions concerning the working of the GST Appellate Tribunal were likely to be discussed. No specific arguments were recorded regarding the validity of the challenged provisions.