On Friday 15/09/2023, the Hon’ble Supreme Court issued notice in the case of a petition filed by the Madras Tax Bar challenging the constitutional validity of Sections 149 and 150 of the Finance Act, 2023.
These sections aim to replace Sections 109 and 110 of the CGST Act, specifically regarding appointments and conditions of service of members to the appellate tribunal under the CGST Act.
The petitioner, represented by Senior Advocate Arvind Datar, argued that the amendments exclude advocates from being appointed as judicial members of the GSTAT, contrary to previous Apex Court judgments.
The petitioner also challenged the eligibility criteria for technical members and the selection committee’s recommendation process.
Additionally, the PIL raised concerns about the term limits and retirement age for tribunal members.
The petition asserts that these amendments violate Articles 14, 19, and 21 of the Constitution of India and the principles of judicial independence, the rule of law, and the separation of powers. It highlighted that the provisions of the CGST Act, which established the appellate tribunal, was never operationalized until the Finance Bill, 2023 introduced last-minute amendments.
These amendments are believed to directly contravene earlier Supreme Court rulings and are deemed unconstitutional as they impact the core principles of the Constitution. The petitioner cited several relevant cases to support their arguments.
In summary, the Madras Tax Bar has challenged the constitutional validity of the provisions of Finance Act, 2023 that amend the CGST Act’s appellate tribunal provisions, citing concerns about the independence of the judiciary and separation of powers.