HOW WILL GST APPELLATE TRIBUNALS FUNCTION

[Dr. Sanjiv Agarwal]

Section 111 of the CGST Act, 2017, provides for procedure to be followed by the Appellate Tribunal to exercise its powers and discharge functions. The powers and functions of the Appellate Tribunal may be exercised and discharged by benches of the Appellate Tribunal.

This section lays down the basic principles of disposal of appeal on the theme that the Appellate Tribunal shall have the power to regulate its own procedures.

It provides for:

1. Appellate Tribunal shall not be bound by procedure as stipulated in Code of Civil Procedure, 1908 (CPC)
2. Appellate Tribunal shall be guided by principles of natural justice
3. Appellate Tribunal shall also be guided by statutory provisions of CGST Act, 2017 and CGST Rules, 2017.
4. Appellate Tribunal shall have power to regulate its own procedure.
5. Appellate Tribunal shall have same powers as of a civil court under Code of Civil Procedure, 1908.

Power and regulation of functions of Appellate Tribunal [Section 111(2)]

The Appellate Tribunal shall have power to regulate its own procedure and the procedure of the benches thereof, in all matters arising out of the exercise of its powers or of the discharge of its functions, including the places at which the benches shall hold their sittings.

In terms of section 111(2) of the CGST Act, 2017, the Appellate Tribunal shall, for the purposes of discharging its functions, have the same powers as are vested in a court under the Code of Civil Procedure, 1908, when trying a suit in respect of the following matters, namely:—

1. summoning and enforcing the attendance of any person and examining him on oath;
2. requiring the discovery and production of documents;
3. receiving evidence on affidavits;
4. subject to the provisions of sections 123 and 124 of the Indian Evidence Act, 1872, requisitioning any public record or document or a copy of such record or document from any office;
5. issuing commissions for the examination of witnesses or documents;
6. dismissing a representation for default or deciding it ex parte;
7. setting aside any order of dismissal of any representation for default or any order passed by it ex parte; and
8. any other matter which may be prescribed.

The Appellate Tribunal shall not, while disposing of any proceedings before it or an appeal before it, be bound by the procedure laid down in the Code of Civil Procedure, 1908, but shall be guided by the principles of natural justice and subject to the other provisions of this Act and the rules made thereunder, the Appellate Tribunal shall have power to regulate its own procedure.

If the members are equally divided, they shall state the point or points on which they differ and make a reference to the national president or the state president who shall either hear the point or points himself or refer the case for hearing on such point or points by one or more of the other members of the Appellate Tribunal and such point or points shall be decided according to the opinion of the majority of these members of the Appellate Tribunal who have heard the case, including those who first heard it.

Enforcement of Orders of Appellate Tribunal [Section 111(3)]

As per section 111(3) of the CGST Act, 2017, any order made by the Appellate Tribunal may be enforced by it in the same manner as if it were a decree made by a court in a suit pending therein, and it shall be lawful for the Appellate Tribunal to send for execution of its orders to the court within the local limits of whose jurisdiction—

1. in the case of an order against a company, the registered office of the company is situated; or
2. in the case of an order against any other person, the person concerned voluntarily resides or carries on business or personally works for gain.

Nature of proceedings of Appellate Tribunal [Section 111(4)]

As per section 111(4) of the CGST Act, 2017, any proceeding before the Appellate Tribunal shall be deemed to be a judicial proceeding within the meaning of section 193 and 228 and for the purpose of section 196 of the Indian Penal Code and the Appellate Tribunal shall be deemed to be a civil court for all the purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973.

Application of Code of Civil Procedure, 1908

As per section 111(1) of CGST Act, 2017, it has been stipulated while disposing of any proceedings before it, the Appellate Tribunal shall not be bound by the procedure laid down in Code of Civil Procedure, 1908 but shall be guided by broad principles of natural justice, provisions of the CGST law and own procedure.