The Madras Bar Association filed the writ petition challenging constitutional validity of constitution of Goods and Service Tax Appellate Tribunal (GSTAT) and qualification of tribunal members amended Sections 109 and 110 of the Central Goods and Services Tax (CGST) Act. 

The bench of Justice Surya Kant and Justice Nongmeikapam Kotiswar Singh has scheduled for further proceedings on April 2, 2025. 

The petition argues that the amendments violate the principles of judicial independence and fair adjudication, raising concerns over the appointment process and the qualifications prescribed for tribunal members.

What is amended Sections 109 and 110 of GST Act?

Section 110 of the Central Goods and Services Tax Act, 2017, has been amended to expand eligibility criteria and revise age limits for appointments. In sub-section (1), advocates with at least ten years of substantial litigation experience in indirect tax matters before tribunals, High Courts, or the Supreme Court are now eligible for appointment. Additionally, a new provision specifies that no person below the age of fifty years can be appointed as the President or a Member.

Further, in sub-section (9), the maximum age for holding office has been increased from sixty-seven to seventy years, with reappointment allowed for up to two years, subject to the specified age limit. Similarly, in sub-section (10), the maximum age has been raised from sixty-five to sixty-seven years, with reappointment permitted for a period not exceeding two years, subject to the prescribed age limit.

Section 109 of the Central Goods and Services Tax Act, 2017 (12 of 2017) provides for Constitution of Goods and Services Tax Appellate Tribunal, which is the second appellate authority within the Goods and Services Tax framework for hearing appeals against the orders passed by the Appellate Authority under the Central Goods and Services Tax Act, 2017 and the State Goods and Services Tax Acts. Non-constitution of the Goods and Services Tax Appellate Tribunals is denying the taxpayers of second appellate remedy and consequently the taxpayers are seeking relief directly from the High Court, by burdening the High Courts.

The amendments to sections 109 and 110 of the Central Goods and Services Tax Act, 2017 for enabling the creation of the Central Goods and Services Tax Appellate Tribunals were notified vide notification No. 28/2023-Central Tax dated 31st July, 2023. During the process of operationalisation of the said Tribunal, it was observed that certain provisions of the Central Goods and Services Tax Act, 2017 need to be aligned with the Tribunal Reforms Act, 2021(33 of 2021).

Case Details

Case Title: Madras Bar Association Versus Union Of India & Anr.

Case No.: Writ Petition(s)(Civil) No(s).1018/2021

Date: 26-03-2025

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