GST APPELLATE TRIBUNAL (APPOINTMENT AND CONDITIONS OF SERVICE OF PRESIDENT AND MEMBERS) RULES, 2023

[Mr. M. GOVINDARAJAN]

Appellate Tribunal

Section 109 of the Central Goods and Services Tax Act, 2017 (‘Act’ for short) provides for the constitution of GST Appellate Tribunal for hearing appeals against the orders passed by the Appellate Authority or the Revisional Authority.  The Government shall, by notification, constitute a Principal Bench of the Appellate Tribunal at New Delhi which shall consist of the President, a Judicial Member, a Technical Member (Centre) and a Technical Member (State).

The Central Government notified the creation of State Benches of the GST Appellate Tribunal vide Notification No. SO 4332 (E), dated 29.10.2019.  This notification was supersessed by another Notification No. SO. 4073(E), dated 14.09.2023. 

Members

Section 110 of the Act provides for the appointment the President and members of the Appellate Tribunal, their qualification, appointment and conditions of service etc.  The Central Government for this purpose made the Goods and Services Tax Appellate Tribunal (Appointment and conditions of service of President and Members) Rules, 2019.

The Central Government, now, in supersession of the above said Rules, made ‘The Goods and Service Tax Appellate Tribunal (Appointment and Conditions of service of President and Members) Rules, 2023, vide Notification No. GST 739 (E), dated 25.10.2023.  These rules came into effect from 25.10.2023.

Selection

The search committee constituted under Section 110 of the Act causes a vacancy circular.  This circular shall be issued by the Member - Secretary giving the details of the post of the Members proposed to be filled up.  This circular shall include-

• The number of existing and anticipated vacancies;
• Qualifications;
• Salary and allowances;
• Format for application;
• Last date for filing applications,

in Form I after making such modifications as may be deemed fit by the Committee.

The eligible candidates may apply to the desired posts in response to the circular issued by the Member - Secretary.  The received applications shall be scrutinized by the Committee against the qualifications.  The Committee may shortlist such number of eligible candidates for personal interaction as it deem fit.

The Committee may, for the appointment of President, either issue a circular or search for suitable candidates eligible for appointment and make an assessment.

The Committee shall, based on the overall assessment of the eligible candidates including personal interaction, suitability, record of performance, integrity as well as adjudicating and experience that are required for the Tribunal, recommend a panel of two names for every post for which selection is being done.

Re-appointment

The application for re-appointment of a Member shall be processed in the same manner as for original appointment.  While making the assessment of suitability of members, the Committee shall give additional weightage to persons on the basis of experience in the Tribunal.

Medical fitness

The President or Members shall be appointed only if the selected shall be declared as medically fit by an authority specified by the Central Government in this behalf.  Likewise the Member (State) shall be declared as medically fit by an authority specified in this behalf by the State in which the said Bench is located.

Retired members

Where the person, appointed as Judge of Supreme Court or a High Court or a serving member of an organization, on his appointment as President or Member shall either resign or obtain voluntary retirement before they join.

Removal

Section 110(12) of the Act provides that the Government may, on the recommendations of the Search-cum-Selection Committee, remove from the office President or a Member, who—

1. has been adjudged an insolvent; or
2. has been convicted of an offence which involves moral turpitude; or
3. has become physically or mentally incapable of acting as such President or Member; or
4. has acquired such financial or other interest as is likely to affect prejudicially his functions as such President or Member; or
5. has so abused his position as to render his continuance in office prejudicial to the public interest.

The President or the Member shall not be removed on any of the grounds specified in clauses (d) and (e), unless he has been informed of the charges against him and has been given an opportunity of being heard.

Where a written complaint alleging any definite charge of the nature referred to in sub-section (12) of section 110 of the Act in respect of President or Member is received by the Central Government, it shall make a preliminary scrutiny of such complaint.    If the Government is of the opinion that based on the preliminary scrutiny there are reasonable grounds for making inquiry the Government shall make a reference of  the same to the concerned committee.  The Inquiry Committee may consists of-

• Judge of Supreme Court or Chief Justice of a High Court, where the inquiry is against the President; or
•  Judge of a High Court, where the inquiry is against a Member.

The inquiry shall be completed within the time prescribed by the Central Government preferably within 6 months. On completion of the inquiry, the Committee shall submit its report to the Central Government stating therein its findings and the reasons thereof on each of the charges separately with such observations on the whole case as it may think fit.

Salary and allowances

The President shall be paid a salary of Rs.2,50,000/- per month and the Member shall be paid a salary of Rs.2,25,000/- per month. If they are in receipt of any pension, the pay of such person shall be reduced by the gross amount of pension drawn by him.

The President and Member shall be entitled to draw allowances and benefits as are admissible to a Government of India officer holding Group 'A' post carrying the same pay.

The President or Members shall have option to avail of accommodation to be provided by the Central Government as per the rules for the time being in force or shall be eligible for reimbursement of house rent subject to a limit of -

• Rs.1,50,000/- per month for President;
• Rs.1,25,000/- per month for Members.

The President, or a Member shall be entitled to the facility of staff car for journeys for official and private purposes at the same terms and conditions as applicable to a Government of India officer holding Group 'A' post carrying the same pay.

Other benefits

• Pension, Provident Fund and gratuity shall not be admissible for the service rendered in the Tribunal.
• The President or Member shall be entitled to-

• 30 days earned leave for every year of service;
• Casual leave not exceeding 8 days in a year.

• They are entitled to encashment of leave in respect of the earned Leave standing to his credit, subject to the condition that maximum leave encashment, including the amount received at the time of retirement from previous service shall not in any case exceed the prescribed limit under the Central Civil Service (Leave) Rules,1972.

Powers

The President shall exercise the powers of Head of the Department for the purpose of:-

• Delegation of Financial Power Rules, 1978;
• General Financial Rules, 2017;
• Fundamental Rules and Supplementary Rules; and
• Central Civil Services (Classification, Control and Appeal) Rules, 1965.

The Vice President shall exercise the powers of the President provided under section 114 of the Act for the relevant State Benches for the purpose of:-

• allocation of appeals amongst members within a bench under his jurisdiction;
• deciding the appeals to be heard by Single Member as per provisions of the Act;
• transfer of appeals amongst the State Benches within his jurisdiction;
•  refer cases under clause (a) of sub-section (9) of section 109 of the Act to a Member in a State Bench within his jurisdiction;
•  such other administrative and financial powers as may be assigned by the President by a general or special order.

Miscellaneous

• The President or the Member shall, before entering upon his office, declare his assets, and his liabilities and financial and other interests.
• The President or Member shall not undertake any arbitration assignment while functioning in these capacities in the Tribunal.
• The President, or Member of the Tribunal, shall not, for a period of two years from the date on which they cease to hold office, accept any employment in, or connected with the management or administration of, any person who has been a party to a proceeding before the Tribunal:
• Every person appointed to be the President, or Member shall, before entering upon his office, make and subscribe an oath of office and secrecy in Form II and Form III annexed to these rules.

Forms

The Rules introduced three forms as detailed below-

• Form I - Format for vacancy circular including the format for application;
• Form II - Form of Oath of Office for President/ Member;
• Form III - Form of Oath of Secrecy for President/Member.