Allahabad HC Stops Establishment Of GST Appellate Tribunal In UP Without Court's Permission

In view of the ongoing conflict with respect to location of the Tribunal, a Division Bench comprising Chief Justice Govind Mathur and Justice Ritu Raj Awasthi said,

"Having considered the arguments advanced and also the instructions communicated to us on behalf of respondent nos. 1 (Union of India) and 2 (GST Council), we deem it appropriate to direct respondent nos. 1 and 2 for not establishing Goods and Services Tax Appellate Tribunal for the State of Uttar Pradesh without leave of this Court."

The matter is kept for final disposal on March 15.

The order was passed on a petition filed by the Awadh Bar Association, seeking establishment of the GST Appellate Tribunal at Lucknow. The Association had also opposed proposals for establishment of the Tribunal at Allahabad.

In its plea, the Association expressed concern over an order passed by the Allahabad Bench of the High Court, quashing the decision of the GST Council dated June 6, 2020, for setting up of the Tribunal at Lucknow.

It submitted that Lucknow is very convenient to the litigants in view of its geographical situation and well connectivity.

In today's hearing, Additional Solicitor General informed the Bench that the Central Government has decided to challenge the above order of the Allahabad Bench by filing a Special Leave Petition before the Supreme Court.

Based on the above submissions, the Division Bench admitted the petition and has decided to hear the same finally at the earliest. Accordingly, the matter is kept for final disposal on March 15.

In the meanwhile, the Respondents have been permitted to file their counter affidavits.

Background

The matter finds its genesis from various conflicting orders passed by the High Court at Allahabad and that at Lucknow, for establishment of the GST Appellate Tribunal in the respective cities.

It may be noted that in August 2018, the GST Council had sought for the State Government's recommendation for establishment of a State Bench and Area Benches of the Tribunal.

In February 2019, the UP Government recommended for State Bench at Lucknow and 20 Area Benches in different cities.

Thereafter, several orders were passed by the two High Court Benches leading to a tussle as to where the State bench of the GST Tribunal should be established.

Last month, the Awadh Bar Association moved the High Court, stating that when repeated appearance of Officers of State and GST Council was made at Allahabad in connection to this issue, then under such pressure the above proposal was modified by GST Council, recommending for establishment of Tribunal at Allahabad and 4 Area Benches.

Finally, on June 12, 2020, the GST Council took a decision for creation of GST State Bench at Lucknow, which was set aside by the Allahabad Bench of the High Court on February 9, 2021.

Related News

A tussle is going on between the Allahabad High Court Bar Association and the Awadh Bar Association over the passing of Uttar Pradesh Educational Services Tribunal Bill, 2021 which proposes to constitute two benches of the Tribunal in Lucknow and Allahabad (now known as Prayagraj).

Yesterday, the Allahabad High Court ordered that the Tribunal will not be established without its permission.

It also requested the Government to invite representatives of the Bar Associations of the Allahabad High Court at Prayagraj as well as at Lucknow to have deliberations with regard to their demands which are being agitated by different demand charters.

Meanwhile, it has ordered for constitution of special Benches, both at the principal seat in Allahabad and at the Lucknow Bench, for adjudicating upon the pending cases.

Case Title: Awadh Bar Association & Anr. v Union of India & Ors.

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