Dr. M.V.K.Murthy vs. The State Of Telangana

Facts

This Public Interest Litigation (PIL) was registered suo motu by the High Court for the State of Telangana based on a letter dated 09/01/2023 from the National President of the National Association of Tax Professionals. The letter highlighted that for a considerable period, the posts of Accountant Member and Departmental Member in the Telangana Value Added Tax Appellate Tribunal (VAT Tribunal) had been lying vacant. This vacancy prevented the Tribunal from functioning and disposing of appeals related to TS VAT, Entry Tax, Entertainment Tax, Luxury Tax, and CST. The petitioner also noted that the Goods and Services Tax (GST) regime, implemented from July 1, 2017, had completed over five years, yet regional and national GST Appellate Tribunals had not been constituted, leading to an increased workload on High Courts. The Telangana VAT Tribunal, established in 2005, had experienced vacancies in key positions, including the Accounts Member for over two years and the Chairman and Departmental Member for certain periods. Despite an interim direction from the High Court in a previous writ petition to fill these posts, the Accounts Member position remained unfilled. The Departmental Member had also recently gone on leave, leaving only the Chairman, who could not form a quorum.

Held

The Court noted that the grievance of the petitioner was substantially addressed as the Telangana VAT Appellate Tribunal has been functional since April 2023, following the joining of the Departmental Member. The Court expressed hope that the post of Accountant Member would also be filled expeditiously. Given that the Tribunal is now functional, the Court was not inclined to proceed further with the Public Interest Litigation. Therefore, the writ petition was disposed of without further orders as to costs. The issue regarding the non-constitution of GST Appellate Tribunals was not explicitly decided or discussed in detail, as the focus shifted to the functionality of the existing VAT Tribunal.

Key Issues

1. Whether the prolonged vacancy of the Accountant Member and Departmental Member in the Telangana Value Added Tax Appellate Tribunal (VAT Tribunal) has rendered it non-functional, thereby impeding the disposal of pending appeals under pre-GST indirect tax laws? 2. Whether the non-constitution of GST Appellate Tribunals at regional and national levels, despite the GST regime being in place for over five years, has contributed to the increased workload of High Courts? Petitioner's Contentions: The petitioner argued that the vacancies in the VAT Tribunal, particularly the Accounts Member and Departmental Member, have paralyzed its functioning. This, coupled with the absence of GST Appellate Tribunals, has led to a backlog of cases and an increased burden on the High Courts. The petitioner relied on the fact that the Telangana VAT Appellate Tribunal was constituted to deal with second appeals, and its inability to function due to vacancies defeats the purpose of its establishment. They sought directions for the appointment of the vacant posts for the expeditious disposal of appeals. Revenue's Contentions: The learned Special Standing Counsel for Commercial Taxes submitted that the Departmental Member had proceeded on long leave but had joined duty in April 2023. Since her joining, the Tribunal has been functional with the Chairman and one Member, capable of functioning with a quorum.