GENERAL GUIDELINES FOR APPEALS - Handbook of GST Law & Procedures (CBIC) [October 2024] - GST

18. GENERAL GUIDELINES FOR APPEALS 18.1. Every order issued by the department is likely to be tested for its legality and propriety at appellate level, and hence, the preparations to counter the appeals by taxpayers as well as the possibility of the requirement of department going in appeal, should commence at the time of commencement of dispute itself, which can be either at the onset of an investigation against a taxpayer or conduct of audit on the records of the taxpayer. 18.2. The original documents resumed during the course of investigation, should be safely kept, and at the time of issue of demand notice, such documents should be carefully listed, paginated and handed over to the adjudicating authority. There have been many instances, where adjudication process has been vitiated due to non-availability of the original relied upon documents, which has resulted in either loss or locking up of precious Government revenue. Similarly, the original copies of statements of persons recorded during the course of investigation should be safe kept. 18.3. During the adjudication process, it is advisable and desirable that the adjudicating authority keeps all the original relied upon documents safe, or at least prepares and keeps digital copies of such documents, which will help in defending the orders. Original documents are important, which determines the final outcome of the appeals, especially in cases of clandestine removals, which involves huge Government revenue. The higher the revenue involved, higher are the chances of the defendants hiding behind the veil of technicalities. 18.4. The most important aspect is adhering to the time lines prescribed in the statutes. Therefore, as soon as the orders by adjudicating authorities or appellate bodies are received, it should be taken up for legal scrutiny notwithstanding the period available for filing of appeal. Last minute of processing the orders for filing of appeal can be hindered by technical glitches as well as unforeseen hindrances. 18.5. In so far as the departmental appeals are concerned, the courts on occasions have acceded to the request of condonation of delay, but many a times the courts have come down heavily on the department for long delays. One such case is the judgement passed by Hon ble Supreme Court in July 2021, in the case of Union of India Ors v/s M/s Vishnu Aroma Pouching Pvt. Ltd. Anr. in SLP (CIVIL) Diary No(s). 1434/ 2021, wherein the Apex Court has come down heavily on the department for late filing of appeals. The department not only drew flak and criticism from the Hon ble Supreme Court, but was also imposed costs of Rs.25,000/- to be recovered from the officers responsible for the delay and ordered the same to be deposited with the Supreme Court Advocates on Record Welfare Fund. Hon ble Supreme Court further ordered to place a copy of the order before the Secretary, Ministry of Finance, Department of Revenue. In another incidence of delay, the Hon ble Supreme Court in the order dated 19th December, 2022, imposed penalty of Rs. 1 lakh on UP Government, as cost. 18.6. In order to avoid such unpleasant situation, it is desirable that the files are processed in time, and hence, endeavours towards future course of action against any order should commence from the moment the order is received in the respective office, with first marking the date of receipt, then collecting all relevant documents. 18.7. In the quest to safeguard Government revenue, which is paramount objective, one should also be able to distinguish and differentiate that no frivolous appeals are filed. If the law is not in favour and the impugned order is judiciously correct and in line with previous judicial pronouncements, then, one should desist from going ahead with appeal in such cases, without looking at the revenue implication, as it is the law which is the deciding factor and not the magnanimity of revenue. 18.8. Role of the department is not only limited to reviewing the orders and filing appeals, but it is also desirable from the officers of the executive Commissionerate that the appeals filed by the taxpayers are followed in right earnest. Many a times the taxpayer, knowingly/ unknowingly, deliberately/ unconsciously, mis-represents the facts of the case, especially those related to the facts of the matter, including the date of service of orders, etc. A copy of the appeal filed by the taxpayer, is always marked to the field officers. The field officers, immediately on receipt of the copies of the appeals, should examine the legality and propriety along with the facts of the case, as per available records and anomalies noticed, if any, should immediately be brought to the notice of the appellate authority. 18.9. The range officer can play an important role, if the law points raised in appeals are discussed with the concerned section/ officer handling the original adjudication of the appeals, as this will enable pointing out the correct legal position to the appellate authority and also weed out unnecessary citations relied upon by the taxpayer in their appeals. This will also help build a strong case for the department and if any new judgments/ pronouncements have come from SC/ HC or Tribunal, which impact the case in favour of revenue, same can be brought to the notice of the appellate authority.