The Bombay High Court rules that since the GST Tribunal has not yet been constituted, the assessee may declare his intention to appeal against the order of the authorities and no recovery should be initiated after the declaration comes on record. (Photo: PTI/FILE)
GST Update: The Bombay High Court has said in its order that if the assessee has failed to file such declaration within the prescribed time and the authorities want to initiate any recovery proceedings, they will be required to file such declaration within 15 days. Days duration has to be given.
Even as the GST tribunal is yet to start functioning and petitioners are approaching courts for appeals, the Bombay High Court has sought to reduce writ petitions in courts and reduce the fear of recovery in the absence of tribunals. Ordered. It added that since the GST Tribunal has not yet been constituted, the assessee may declare his intention to appeal against the order of the authorities and no recovery should be initiated after the declaration comes on record.
The GST Council in its meeting last month approved the creation of GST tribunals with their own benches in the states. The tribunal is expected to start functioning in 6-10 months. The setting up of the Goods and Services Tax Appellate Tribunal (GSTAT) will ensure that businesses can approach the tribunal instead of the High Court for many cases.
Sanjeev Sachdeva, Partner, Luthra & Luthra Law Offices India, said that in the absence of GST tribunals, assessees facing orders of demand issued by lower authorities have been forced to approach High Courts (HCs) having writ jurisdiction .
“Though certain writ petitions have been entertained on the ground that there is no effective alternative available to the assessees, it has undoubtedly increased the burden on both the Courts as well as the assessees,” he said.
However, he added that the CBIC and State GST authorities have already issued circulars providing two interim reliefs for assessees – (1) The time period for filing appeals to the GST Tribunal shall commence from the day the Tribunal becomes effective will start working; and (2) a simple declaration by the assessee that he proposes to file an appeal against the order of demand before the Tribunal pending recovery proceedings against him.
Sachdeva said that in view of these circulars, the Bombay HC has held that the writ should not be allowed as there is no prejudice against the assessee, and an effective statutory remedy will be available soon when the tribunal starts functioning.
Abhishek Jain, Partner (Indirect Taxes), KPMG in India, said, “This is a welcome order from the High Court on reducing writ petitions and fear of recovery in the absence of tribunals.”
The Bombay High Court also stated in its order that if the assessee has failed to file such declaration within the prescribed time and the authorities wish to initiate recovery proceedings, they shall be given 15 days to file such declaration. Period has to be given.
KPMG’s Jain also said, “This Bombay High Court order will help streamline the process flow and avoid disputes between taxpayers and the department till the establishment of the GST tribunal.” In the interim period, to reduce confusion, the government may consider issuing similar guidelines for a pan India level.”
The GoM on the GST tribunal was constituted in July under the chairmanship of Haryana Deputy Chief Minister Dushyant Chautala.
read all latest business news Here
