Rajasthan Bar Federation vs. Union Of INDIA

Held

The Court noted that the issue of the non-constitution of the GST Appellate Tribunal had been pending for four years. Considering the recent developments brought to its notice by the respondents, specifically the decision of the GST Council on July 11, 2023, to notify the Rules on August 1, 2023, and subsequently take steps for constituting the Appellate Tribunal, the Court found no useful purpose in keeping the writ petitions pending. The Court disposed of the petitions with liberty granted to the petitioners to revive them if there is a delay in the constitution of the Appellate Tribunal. Furthermore, the petitioners were granted liberty to intervene in pending cases, if they so advised, solely for the purpose of ventilating their grievance regarding the constitution of the Appellate Tribunal. The Court did not make any specific findings on the merits of the delay or the prejudice caused, but rather relied on the stated progress by the respondents.

Facts

Two Public Interest Litigation (PIL) petitions were filed by Bar Associations, namely Rajasthan Bar Federation and The Jaipur Tax Bar Association. The core issue raised in both petitions concerns the non-constitution of the Goods and Services Tax (GST) Appellate Tribunal. The matter had been pending before the High Court for approximately four years. The respondents, including the Union of India and the State of Rajasthan, brought to the Court's attention a recent development in a related case, M/s Shree Krishna Rolling Mills (Jaipur) Ltd. Versus Assistant Commissioner. In that proceeding, the Additional Solicitor General informed the Court that the GST Council, in its meeting on July 11, 2023, decided to notify the relevant Rules on August 1, 2023, and subsequently initiate steps for constituting the Appellate Tribunal. Time was granted in that matter to file an affidavit with supporting documents.

Key Issues

1. Whether the continued non-constitution of the GST Appellate Tribunal, despite the passage of a significant period since the enactment of the GST regime, constitutes a failure on the part of the respondents to fulfill their statutory obligations, thereby causing prejudice to taxpayers seeking redressal of grievances? (Question of law) Petitioner's Arguments: The petitioners argued that the absence of a functional Appellate Tribunal for an extended period hinders the effective administration of justice under the GST law. They contended that taxpayers are left without a proper forum to appeal decisions of the adjudicating authorities, leading to a denial of their right to seek timely and effective remedies. They relied on the principle that statutory rights must be accompanied by effective mechanisms for their enforcement. Respondents' Arguments: The respondents, through the Additional Solicitor General, informed the Court about recent positive developments. They stated that a decision had been taken by the GST Council on July 11, 2023, to notify the Rules on August 1, 2023, and thereafter proceed with the constitution of the Appellate Tribunal. They presented this as an indication of the government's commitment to addressing the issue.