REVISION UNDER GST LAWS

[Mr. M. GOVINDARAJAN]

Non appealable decisions and orders

Section 121 of Goods and Services Tax Act, 2017 (‘Act’ for short) provides that no appeal shall lie against any decision taken or order passed by an officer of central tax if such decision taken or order passed relates to any one or more of the following matters, namely:-

• an order of the Commissioner or other authority empowered to direct transfer of proceedings from one officer to another officer; or
• an order pertaining to the seizure or retention of books of account, register and other documents; or
• an order sanctioning prosecution under this Act; or
• an order passed under section 80.

Payment of tax and other amount in installments

Section 80 of the Act provides that on an application filed by a taxable person, the Commissioner may, for reasons to be recorded in writing, extend the time for payment or allow payment of any amount due under this Act, other than the amount due as per the liability self-assessed in any return, by such person in monthly installments not exceeding twenty four, subject to payment of interest under section 50 and subject to such conditions and limitations as may be prescribed.  Where there is default in payment of any one installment on its due date, the whole outstanding balance payable on such date shall become due and payable forthwith and shall, without any further notice being served on the person, be liable for recovery.

Revisional Authority

Section 2(99) of the Act defines the expression ‘revisional authority’ as an authority appointed or authorized for revision of decision or orders as referred to in section 108.

Non applicability

Section 108 (2) of the Act provides that the Revisional Authority shall not exercise any power, if-

• the order has been subject to an appeal under-

• section 107  - (appeal to appellate authority); or
• section 112  - (appeal to Appellate Tribunal); or
• section 117  - (appeal to High Court); or
• section 118 – (appeal to Supreme Court); or

• the period specified under sub-section (2) of section 107 has not yet expired or more than three years have expired after the passing of the decision or order sought to be revised; or
• the order has already been taken for revision under this section at an earlier stage; or
• the order has been passed in exercise of the powers under section 108(1).

the Revisional Authority may pass an order on any point which has not been raised and decided in an appeal before the expiry of a period of 1 year from the date of the order in such appeal or before the expiry of a period of 3 years referred to in clause (b) of that sub-section, whichever is later.

Procedure

•  Section 108 (1) of the Act provides that subject to the provisions of section 121 and any rules made there under, the Revisional Authority may-

• on his own motion, or
• upon information received by him or
• on request from the Commissioner of State tax, or the Commissioner of Union territory tax,

call for and examine the record (include all records relating to any proceedings under this Act available at the time of examination by the Revisional Authority) of any proceedings, and if he considers that any decision (include intimation given by any officer lower in rank than the Revisional Authority) or order passed under-

• CGST Act; or
• the State Goods and Services Tax Act; or
• the Union Territory Goods and Services Tax Act,

by any officer subordinate to him is erroneous in so far as it is prejudicial to the interest of revenue and is illegal or improper or has not taken into account certain material facts, whether available at the time of issuance of the said order or not or in consequence of an observation by the Comptroller and Auditor General of India.

• The Revisional Authority may, if necessary, stay the operation of such decision or order for such period as he deems fit.
• After giving the person concerned an opportunity of being heard and after making such further inquiry as may be necessary, passes such order, as he thinks just and proper, including enhancing or modifying or annulling the said decision or order.
•  Where the Revisional Authority decides to pass an order in revision under section 108 which is likely to affect the person adversely, the Revisional Authority shall serve on him a notice in FORM GST RVN-01 and shall give him a reasonable opportunity of being heard.

Orders

The Appellate Tribunal may, after giving the parties to the appeal an opportunity of being heard, pass such orders thereon as it thinks fit, confirming, modifying or annulling the decision or order appealed against or may refer the case back to the Revisional Authority or to the original adjudicating authority, with such directions as it may think fit, for a fresh adjudication or decision after taking additional evidence, if necessary.

However, the Revisional Authority may pass an order on any point which has not been raised and decided in an appeal before Appellate Authority/Appellate Tribunal/High Court/Supreme Court, before the expiry of a period of one year from the date of the order in such appeal or before the expiry of a period of three years from the date of initial order, whichever is later.

The Appellate Tribunal shall send a copy of every order passed under this section to the Revisional Authority, or the original adjudicating authority, as the case may be, the appellant and the jurisdictional Commissioner or the Commissioner of State tax or the Union territory tax.

The Revisional Authority shall, along with its order under sub-section (1) of section 108, issue a summary of the order in FORM GST APL-04 clearly indicating the final amount of demand confirmed.

Binding nature of order

Section 108 (3) of the Act provides that every order passed in revision shall, subject to the provisions of section 113 or section 117 (appeal to High Court) or section 118 (appeal to supreme court), be final and binding on the parties.

Excluding the period for limitation

Section 108(4) of the Act provides that  if the said decision or order involves an issue on which the Appellate Tribunal or the High Court has given its decision in some other proceedings and an appeal to the High Court or the Supreme Court against such decision of the Appellate Tribunal or the High Court is pending, the period spent between the date of the decision of the Appellate Tribunal and the date of the decision of the High Court or the date of the decision of the High Court and the date of the decision of the Supreme Court shall be excluded in computing the period of limitation referred to in clause (b) of sub-section (2) where proceedings for revision have been initiated by way of issue of a notice under this section.

Where the issuance of an order under sub-section (1) is stayed by the order of a court or Appellate Tribunal, the period of such stay shall be excluded in computing the period of limitation referred to in clause (b) of sub-section (2).

Appeal against revision

Section 109(1) provides that an appeal against the order passed by the Revisional Authority may be filed before the Appellate Tribunal

The National Bench or Regional Benches of the Appellate Tribunal shall have jurisdiction to hear appeals against the orders passed by the Revisional Authority in the cases where one of the issues involved relates to the place of supply.  The State Bench or Area Benches shall have jurisdiction to hear appeals against the orders passed by the Revisional Authority in the cases involving matters other than the issues involved relating to the place of supply.

Any appeal where the tax or input tax credit involved or the difference in tax or input tax credit involved or the amount of fine, fee or penalty determined in any order appealed against, does not exceed ₹ 5,00,000/- and which does not involve any question of law may, with the approval of the President and subject to such conditions as may be prescribed on the recommendations of the Council, be heard by a bench consisting of a single member.