REVISION BY REVISIONAL AUTHORITY - Handbook of GST Law & Procedures (CBIC) [October 2024] - GST

9. REVISION BY REVISIONAL AUTHORITY 9.1. Revisional Authority has been defined under Section 2 (99) of the CGST Act, 2017, as an authority appointed or authorized for revision of decision or orders as referred in Section 108 of the CGST Act, 2017. The underlying principle for approaching the Revisional Authority, is that, subject to provisions of Section 121 of the CGST Act, 2017and any rules made thereunder, the order under consideration should be prejudicial to the interest of revenue [Section 108 (1) of the CGST Act, 2017] 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, he may, if necessary, stay the operation of such decision or order for such period as he deems fit and after giving the person concerned an opportunity of being heard and after making such further inquiry as may be necessary, pass such order, as he thinks just and proper, including enhancing or modifying or annulling the said decision or order. This underlying principle makes it clear that no tax-payer would be approaching this authority, as it is designated to cover only such cases, which are against the interest of revenue. 9.2. The CGST Act, 2017, provides for Revisional Authority (RA), to take cognizance of any order passed by an officer sub-ordinate to him is erroneous suo-moto or under reference from Commissioner(s), subject to the provisions of Section 121 of the CGST Act, 2017, stay the operation of such decision or order for such period, as he deems fit and after giving the person concerned an opportunity of being heard and after making further inquiry, if necessary, pass order, as he thinks just and proper, including enhancing or modifying or annulling the said decision or order [Section 108 (1) of the CGST Act, 2017], as prescribed in FORM GST RVN-01, after giving him a reasonable opportunity of being heard. 9.3. However, RA shall not exercise these powers in cases where: - an appeal has already been filed against the order [Section 108 (2)(a) of the CGST Act, 2017] or period of appeal has not expired or more than 3 years have lapsed since the issue of the order [S. 108 (2)(b)], or the order has previously been taken for revisions [Section 108 (2)(c) of the CGST Act, 2017], or an order has already been passed under Section 108(1) [Section 108 (2)(d) of the CGST Act, 2017]. An exception has been provided to these instances under proviso to Section 108 (2) (d) of the CGST Act, 2017, whereby the RA may pass an order on any point which has not been raised and decided in an appeal 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 referred to in clause (b) of that Sub-section, whichever is later. 9.4. Every order passed in revision under Sub-section (1) of Section 108 of the CGST Act, 2017 shall, subject to the provisions of Section 113 or Section 117 or Section 118 of the CGST Act, 2017, be final and binding on the parties. There are some exceptions related to limitations as per Sub-sections (4) (5) to Section 108 of the CGST Act, 2017 where such order is stayed by the court or Appellate Tribunal. 9.5. It is relevant to note that RA is totally different and distinct from the appellate authorities and has its task, jurisdiction and nature of work clearly cut out. In almost all cases, it is the revenue which would be approaching the Revisional Authority in cases of orders passed by Officers subordinate to him is prejudicial in interest of revenue. An application has to be made before any appeal is filed against the order, against which the Revisional Authority is being approached. Once an appeal is filed, the proceedings become void. 9.6. Let s consider a hypothetical situation, where the adjudicating authority, i.e., Superintendent or DC/ AC or ADC/ JC, passes an order in-original, thereby setting aside the demand notice. In other words, if the case is decided in favour of a taxpayer it is natural that the taxpayer will not go in appeal. Legal parameters at the material time are such that the order appears to be correct even legally to the department, hence, it results in acceptance of the order in original. Say, after lapse of a year, there is a judicial pronouncement, which changes the legal principle and interpretation, relying on which benefit was extended to the taxpayer and demand was set-aside. In such instances, the Commissioner, can stay such order and revisit the entire issue, either on his own, or on any reference being made to him, in his capacity as being Revisional Authority, follow principles of natural justice, and then pass an order as per the legal provisions. The essence of having Revisional Authority, is that it can protect the department from potential revenue loss, upto 3 years from the date of issuance of orders by the adjudicating authority, whereas time limit to appeal before any of the appellate body is 180 days/ 90 days. 9.7. Notification No. 05/2020- Central Tax dated 13.01.2020, authorizes following officers as Revisional Authorities: (a) Principal Commissioner or Commissioner of Central Tax for decisions or orders passed by the Additional or Joint Commissioner of Central Tax; and (b) Additional or Joint Commissioner of Central Tax for decisions or orders passed by the Deputy Commissioner or Assistant Commissioner or Superintendent of Central Tax.