INTRODUCTION - Handbook of GST Law & Procedures (CBIC) [October 2024] - GST

CHAPTER XI APPEALS REVISION 1. INTRODUCTION : 1.1. Any person aggrieved by any decision or order passed by an adjudicating authority may appeal to Appellate Authority. An appeal is a request made to a higher judicial or quasi-judicial authority to review, uphold or and potentially overturn a decision made by a lower judicial or quasi-judicial authority. Tax law recognizes that on any given set of facts and laws, there can be different opinions or viewpoints/ interpretations hence, it is likely that the taxpayer may not agree with the adjudication order so passed by the tax officer. It is equally possible that the Department may itself not be in agreement with the adjudication order in some cases. It is for this reason that the statute provides further higher forums of appeal, to both sides. Revisional Authority means an authority appointed or authorised for revision of decision or orders as defined under Section 2(99) read with Section 108 of the CGST Act, 2017. 1.2. The relevant provisions for appeal and revision are contained in Chapter XVIII of the CGST Act, 2017, summary of which are as under Sr. No. Sections / Rules Provision pertaining to 1. Section 2(8) Definition of Appellate Authority 2. Section 2(99) Definition of Revisional Authority 3. Section 107 Appeals / Application to Appellate Authority 4. Section 108 Powers of Revisional Authority 5. Section 109 Constitution of Appellate Tribunal and Benches thereof 6. Section 110 President and Members of Appellate Tribunal, their qualification, appointment, conditions of service, etc. 7. Section 111 Procedure before Appellate Tribunal 8. Section 112 Appeals to Appellate Tribunal 9. Section 113 Orders of Appellate Tribunal 10. Section 115 Interest on refund of amount paid for admission of appeal 11. Section 116 Appearance by authorised representative 12. Section 117 Appeal to High Court 13. Section 118 Appeal to Supreme Court 14. Section 119 Sums due to be paid notwithstanding appeal, etc. 15. Section 120 Appeal not to be filed in certain cases 16. Section 121 Non-appealable decisions and orders 17. Rule 108 Appeal to the Appellate Authority 18. Rule 109 Application to the Appellate Authority 19. Rule 109A Appointment of Appellate Authority 20. Rule 109B Notice to person and order of revisional authority in case of revision 21. Rule 109C Withdrawal of Appeal 22. Rule 110 Appeal to Appellate Tribunal 23. Rule 111 Application to Appellate Tribunal 24. Rule 112 Production of additional evidence before the Appellate Authority or the Appellate Tribunal 25. Rule 113 Order of Appellate Authority or Appellate Tribunal 26. Rule 114 Appeal to High Court 27. Rule 115 Demand confirmed by the Court 28. Rule 116 Disqualification for misconduct of an authorised representative 29. Rule 26 Method of authentication 1.3. Any person aggrieved by any decision or order passed under this Act by an adjudicating authority may appeal before the higher judicial/ quasi-judicial authority as prescribed. Under the CGST Act, 2017 both the taxpayer and the department have been conferred with a right of remedies against the order passed by the adjudicating authority. 1.4. Appeals do not always originate from adjudication orders, but in taxation laws, people are often allowed to appeal, in court, against a communication of the decision made by executive bodies, which can be either the Commissioner(s)/ Commissionerate(s) or any other jurisdictional body. Appeals can be either discretionary or of right. A right of appeal of right is the one that the higher judicial or quasi-judicial authority must hear, if the losing party demands it, while a discretionary appeal is the one that the higher court may, but does not have to, consider. 1.5. Appeal is the right to get remedy guaranteed by law to each and every individual by our constitution and declining the same will render the whole process ultra vires to the constitutional provisions. In this way the losing party is able to have the decision reviewed by another independent authority or judge or judges. The judicial or quasi-judicial authority determining an appeal will correct errors by the primary quasi-judicial//judicial authority and the right of appeal ensures that, as far as possible, appellate authorities arrive at correct decisions. The decisions of appellate courts are fully reasoned and widely available. 1.6. A person who is aggrieved by a decision or order passed against him by an adjudicating authority, can file an appeal to the Appellate Authority within 3 months from the date of communication of the impugned order along with minimum 10% of disputed amount as pre-deposit. 1.7. The aggrieved person pursuing an appeal is called an appellant, while the person defending the ruling is called the respondent. 1.8. Deciding appeal under the CGST Act, 2017 is a quasi-judicial function of the authority. Hence, the Appellate Authority has to follow the principles of natural justice such as hearing the appellant, allowing reasonable adjournments (not more than 3), permitting additional grounds (if found reasonable), etc. On conclusion of the appeal process, the Appellate Authority will pass his speaking order (Order-in-Appeal) which may confirm, modify or annul the decision or order appealed against. The Order-in-appeal has to be a speaking order i.e. it should state the points for determination, the decision thereon and the reasons for the decision. 1.9. Appellate Stages: The Appellate remedy available for order passed by different adjudicating authorities is as follow: - Sr No Order passed by Appellate Authority 1 All officers upto AC/DC Joint/ Additional Commissioner (Appeals) (u/s 107) 2 JC/ADC Commissioner (Appeals) (u/s 107) 3 All officers upto including JC/ADC Revisional Authority (u/s 108) 3 ADC (Appeals) Commissioner (Appeals) Tribunal (to be formed) (u/s 112) 4 Tribunal High Court on question of law (u/s 117) Supreme Court (u/s 118) 5 High Court Supreme Court (u/s 118) FLOW CHART Amount of mandatory pre-deposit for filing appeal before Commissioner (Appeals) or ADC/ JC (Appeals) is equal to the admitted liabilities [Section 107 (6) (a) of the CGST Act, 2017] and 10% of remaining amount of tax in dispute arising out of the impugned order subject to maximum of (Rs. 25 crores substituted to Rs. 20 Crores vide Section 141 of THE FINANCE (No. 2) ACT, 2024 No.15 of 2024 dated 16th August, 2024) [Rs. 20 Crores] or/and 25% of penalty amount for the cases covered under Section 129(3) of the CGST Act, 2017 [Section 107 (6) (b) of the CGST Act, 2017]. Appeal by taxpayer should be filed within 3 months [Section 107 (1) of the CGST Act, 2017] or the notified date, whichever is later and by department within 6 months [Section 107 (2) of the CGST Act, 2017]. ** Amount involved should not be less than Rs. 50,000/- at the discretion of the Appellate Tribunal [Section 112 (2) of the CGST Act, 2017]. Amount of mandatory pre-deposit for filing appeal before Tribunal is equal to the admitted liabilities and (Rs. 25 crores substituted to Rs. 20 Crores vide Section 141 of THE FINANCE (No. 2) ACT, 2024 No.15 of 2024 dated 16th August, 2024) [10%] of remaining amount of tax in dispute arising out of the appellate order (over and above an amount of 10% already paid under Section 107 (6)(b) of the CGST Act, 2017), subject to maximum of (Rs. 25 crores substituted to Rs. 20 Crores vide Section 141 of THE FINANCE (No. 2) ACT, 2024 No.15 of 2024 dated 16th August, 2024) [Rs. 25 Crore] [Section 112 (8) (b) of the CGST Act, 2017] and appeal by taxpayer should be filed within 3 months [Section 112 (1) of the CGST Act, 2017] and by department within 6 months [Section 112 (3) of the CGST Act, 2017] from the date of communication of the Order-in-Appeal. *** As per Section 117 of CGST Act, 2017 an appeal shall lie to the High Court of any order passed by the Principal Bench/State Bench of Appellate Tribunal in cases wherein the Hon ble High Court is satisfied that the case involves a substantial question of law. **** As per Section 118 of CGST Act, 2017 an appeal shall lie to the Supreme Court of any order passed by the Principal Bench or State Benches of Appellate Tribunal or from judgement or order passed by the High Court in an appeal made under Section 117 of the CGST Act, 2017.