LUCKNOW: The Lucknow bench of Allahabad high Court on Thursday directed the Central government and the GST council not to establish the Goods and Services Tax (GST) Appellate Tribunal for the state of Uttar Pradesh in Prayagraj without its permission.
Passing the interim order, the bench posted the next hearing in the matter on March 15, 2021.
On the second consecutive day on Thursday, the bench led by Chief Justice Govind Mathur issued similar directives on the establishment of two tribunals. While on Wednesday, it had kept the establishment of the education tribunal under leave of the HC, on Thursday the same bench issued directives for establishment of the GST tribunal only after its permission.
The division bench, comprising CJ Govind Mathur and Justice Ritu Raj Awasthi, passed the order on a public interest litigation filed by Awadh Bar Association (ABA). The ABA had challenged the decision of GST Council of March 14, 2020, whereby it was considering to establish the GST appellate tribunal at Prayagraj.
In response to the bench’s earlier direction, additional solicitor general Shashi Prakash Singh said it that the Central government and GST council took a decision to file special leave petition (SLP) before the Supreme Court against an order of Allahabad high court issued on February 9, 2021, directing the GST council to establish the principal bench of the GST appellate tribunal at Prayagraj within a stipulated period.
Earlier, appearing for the ABA, president and senior advocate HGS Parihar, JN Mathur and LP Mishra had vehemently argued that the GST council had on February 21, 2019, decided that the GST tribunal would be established in the state capital, but subsequently the council changed its decision without any rhyme and reason to establish the tribunal at Prayagrag in arbitrary and illegal manner.
It was also submitted before the bench led by the CJ on Thursday that due to repeated requirement of personal appearance of the officials of GST Council before the Allahabad High Court, the GST council under pressure changed its earlier recommendation for establishing state bench at Lucknow.
The battery of lawyers reiterated before the bench that since Lucknow is well connected with all the cities and states through airport, railway stations, bus stations, etc, litigants would not face any difficulty in pursuing their case and as such at the most an area bench can be established at Prayagraj to cater to needs of litigants around Prayagraj.
It was submitted before the court that the Lucknow bench had already on May 31, 2019, held that there was no judicial precedent that the tribunals should only be established at the principal seat of the High Court at Prayagraj. The establishment of the tribunal lies in the exclusive domain of the executive.
In fact, in August 2018, the state government recommended to the GST council to establish a state bench of the GST tribunal in Lucknow and area benches at Prayagraj and 19 other cities. Thereafter, several conflicting orders were passed by Allahabad High Court and Lucknow Bench.
Meanwhile, ABA general secretary Sharad Pathak said that the bar has decided to continue its abstention from judicial work in the HC on Friday as well. Owing to lawyers’ decision to refrain from judicial work in different courts in the state capital, the judicial functioning has been adversely affected. However, some benches of HC passed orders in many cases after hearing the petitioners in person.