GSTATs appointments: Supreme Court seeks Finance Ministry's response

The Supreme Court on Friday sought response from the finance ministry on a PIL challenging constitutional validity of some provisions of the Finance Act 2023 related to appointment and service conditions of members of Goods and Services Tax Appellate Tribunals (GSTATs).

Madras Tax Bar (MTB), a society of lawyers specialising in taxation laws, through senior counsel Arvind Datar, told a bench led by CJI DY Chandrachud that the impugned provisions are violative of fundamental rights and also contravene the principles of independence of the judiciary, rule of law, and separation of powers, which are part of the basic structure of the Constitution. Datar said the formation of tribunals - under the Central Goods and Services Tax Act, 2017 - was contrary to four constitutional bench judgments as they exclude advocates from being appointed as judicial members.

He also raised objection to the provision that make officers below the rank of secretaries and additional secretaries with vague and non-adjudicatory experience eligible for appointment as technical members. The top court bench, while issuing notice to the government, also asked MTB to serve the petition on the Attorney General of India. The finance ministry on Thursday notified setting up of 31 appellate tribunals across the country. Parliament had in March cleared changes in the Finance Act for setting up appellate tribunals for resolution of disputes under goods and services tax.