Heard Shri Nishant Mishra, learned counsel for the petitioner, Shri Gyan Prakash, learned Assistant Solicitor General of India assisted by Shri K.J. Shukla and Shri R.C. Shukla learned counsel for the respondent nos.1 to 6, Shri Vikas Chandra Tripathi, learned Chief Standing Counsel assisted by Shri Nimai Dass, learned Additional Chief Standing Counsel and Shri B.P. Singh Kachhawah, learned Standing Counsel, Shri C.B. Tripathi, learned Special Counsel for the State.

Shri Navin Sinha, learned Senior Advocate assisted by Shri Rahul Agrawal, Advocate and Sri Akhilesh Kumar Mishra, Senior Vice President, High Court, Bar Association Allahabad are also present to assist the Court.

The status report along with an affidavit has been filed by the State Government today, which is taken on record. The Counsel for the Central Government has also placed a letter, which is also taken on record.

Learned Counsel for the petitioner, Sri Nishant Mishra has drawn the attention of this Court to the provisions of Section 109 (6) of Central Goods & Services Tax Act, 2017 which reads as hereunder:-

“(6) The Government shall, by notification, specify for each State or Union territory except for the State of Jammu and Kashmir, a Bench of the Appellate Tribunal (hereafter in this Chapter, referred to as “State Bench”) for exercising the powers of the Appellate Tribunal within the concerned State or Union territory:

Provided that for the State of Jammu and Kashmir, the State Bench of the Goods and Services Tax Appellate Tribunal constituted under this Act shall be the State Appellate Tribunal constituted under the Jammu and Kashmir Goods and Services Tax Act, 2017:

Provided further that the Government shall, on receipt of a request from any State Government, constitute such number of Area Benches in that State, as may be recommended by the Council:

Provided also that the Government may, on receipt of a request from any State, or on its own motion for a Union territory, notify the Appellate Tribunal in a State to act as the Appellate Tribunal for any other State or Union territory, as may be recommended by the Council, subject to such terms and conditions as may be prescribed.”

From a bare reading of the provision of the Act itself it is clear that it is not in the domain of the State Government to make a recommendation for deciding the place of the State Bench of the Tribunal. The role of the State is confined to determine the place of area benches.

Insofar as the determination of location of the State Bench is concerned, it remains in the domain of the Central Government for which the matter is under consideration before the Central Government.

Insofar as the judgement dated 31.05.2019 of the Lucknow Bench in PIL (Civil) No.6800 of 2019 (Oudh Bar Asso. High Court, Lko. Thru General Secretary & Anr. vs. U.O.I. Thru Secy. Ministry of Finance & Ors.) is concerned, it appears that the aforesaid provisions have not been considered at all, hence, prima facie the judgement appears to be bereft with non-consideration of the above facts. The Central Government shall proceed in accordance with Section 109 (6) of C.G.S.T. Act, 2017.

List this matter on 19.08.2019.

A proposal has been made by the High Court Bar Association, Allahabad that as the principal seat is at Allahabad having larger territorial jurisdiction and there is a sufficient space available in the premises of Board of Revenue/Police Headquarter, Allahabad, which has been currently vacated, the State Bench may be housed in the said premises. The location of the premises is practically in the institutional area, centrally located having ample parking space and near Allahabad High Court. Their suggestion is welcomed by the members of the Bar.

Sri Gyan Prakash Srivastava, learned Assistant Solicitor General of India is granted three week’s time to file status report regarding decision taken by the Central Government.