CH 22 APPEAL - Unlocked

22
APPEALS AND
REVISION
For the sake of brevity, the terms ‘Appellate Authority’, ‘Revisional Authority’, ‘input tax credit’
have been referred to as ‘AA’, ‘RA’ and ‘ITC’ respectively in this Chapter. The section numbers
referred to in the Chapter pertain to CGST Act, unless otherwise specified.
LEARNING OUTCOMES
After studying this Chapter, you will be able to –
 identify the various kinds of appellate foram available under the CGST Act
and their hierarchy
 explain the various aspects relating to filing of an appeal before the
Appellate Authority by the taxpayer as well as by the Department and the
provisions relating to revision of orders by the Revisional Authority
 appreciate and explain the provisions relating to constitution and
structure of Appellate Tribunal as also the various aspects relating to filing
of an appeal before it by the taxpayer as well as by the Department
 comprehend and explain the concept of mandatory pre-deposit for filing
appeals
 explain the various aspects relating to filing of an appeal before the High
Court and the Supreme Court
 apply the above and other provisions relating to appeals and revision in
problem solving
© The Institute of Chartered Accountants of India

22.2 GOODS AND SERVICES TAX
1. INTRODUCTION
Tax laws impose various obligations on taxpayers. Such
obligations are broadly of two kinds: levy-related (e.g.
scope of levy, taxable value, tax rate etc.) and
procedure-related (e.g., obtaining registration, filing of
returns, manner of depositing tax etc.). The taxpayer’s
compliance with these obligations is verified by tax
authorities (by exercising various powers such as
undertaking scrutiny, audit, anti-evasion proceedings,
etc.). As a result of which, sometimes there are situations of actual or perceived
non-compliances. If the difference in the views persists, it results into a dispute,
which is then required to be resolved.
Under tax laws, on any given set of facts and legal provisions there can be different
opinions or viewpoints. Hence, it is likely that the taxpayer may not agree with the
“adjudication order” passed by a tax authority. It is equally possible that the Tax
Department may itself not agree with the adjudication order. It is for this reason
that the tax statutes provide for an appellate mechanism to both the sides. In legal
parlance, appeal is a timely resort for review by a higher authority, where parties
request a formal change to an official decision.
Since the right to appeal is a statutory right (i.e. a right conferred by the statute),
the statute also places fetters on the exercise of this right. The time limits
prescribed by the statute for filing of appeals, the requirement of making pre-
deposit of a certain sum before the appeal can be heard by the competent authority
are the examples of such fetters on the statutory right.
India has adopted a dual GST, i.e. GST is levied by both Centre and State
Governments concurrently on a transaction. Does this mean that if a taxpayer is
aggrieved by any proceedings, he will have to approach both the authorities
separately for exercising his right of appeal? The answer is ‘no’.
GST law makes provisions for cross empowerment between CGST and SGST/UTGST
officers to ensure that a proper officer under the CGST Act is also treated as the
proper officer under the SGST/UTGST Act and vice versa. Thus, a proper officer can
issue orders with respect to both, the CGST as well as the SGST/UTGST laws. GST
law also provides that where a proper officer under one Act (say CGST) has passed
an order, any appeal/review/ revision/rectification against the said order will lie
only with the proper officers of that Act (CGST Act). Accordingly, if any order is
passed by the proper officer under, say Haryana SGST Act, any

APPEALS AND REVISION 22.3
appeal/review/revision/rectification against the said order will lie only with the
proper officer under the Haryana SGST Act.
Chapter XVIII [Sections 107 to 121] of the CGST Act supplemented with Chapter XIII
[Rules 108 to 116] of the CGST Rules prescribe the provisions relating to appeals
and revision. State GST laws also prescribe identical provisions.
Provisions of appeals and revision under CGST Act have also been made
applicable to IGST Act vide section 20 of the IGST Act.
A brief overview of the provisions covered under the aforesaid sections 107 to 121,
are outlined in this chapter.
HIERARCHY OF APPEALS AND REVISION
Chapter XVIII of CGST Act – Appeals and Revision
Order passed by an Order passed by an officer subordinate to a

Adjudicating Authority Revisional Authority
APPELLATE AUTHORITY REVISIONAL AUTHORITY
APPELLATE TRIBUNAL
Orders passed by the

National Bench/ Regional HIGH COURT
Benches of the Tribunal
SUPREME COURT

2. RELEVANT DEFINITIONS
 Adjudicating authority means any authority, appointed or authorised to pass any

order or decision under this Act, but does not include the Central Board of Indirect
Taxes and Customs, the Revisional Authority, the Authority for Advance Ruling, the
Appellate Authority for Advance Ruling, the Appellate Authority, the Appellate
Tribunal and the Authority referred to in sub-section (2) of section 171 [Section 2(4)].
 Appellate Authority means an authority appointed or authorised to hear
appeals as referred to in section 107 [Section 2(8)].
 Appellate Tribunal means the Goods and Services Tax Appellate Tribunal
constituted under section 109 [Section 2(9)].
 Authorised representative means the representative as referred to in
section 116 [Section 2(15)].
 Board means the Central Board of Indirect Taxes and Customs constituted
under the Central Boards of Revenue Act, 1963 [Section 2(16)].
 Commissioner means the Commissioner of central tax and includes the
Principal Commissioner of central tax appointed under section 3 and the
Commissioner of integrated tax appointed under the Integrated Goods and
Services Tax Act [Section 2(24)].
 Revisional Authority means an authority appointed or authorised for
revision of decision or orders as referred to in section 108 [Section 2(99)].
3. APPEALS TO APPELLATE AUTHORITY

[SECTION 107]
A. Appeal to Appellate Authority (AA) by aggrieved person
(taxpayer)
(i) Orders appealable to AA
An appeal against any decision/order passed by any adjudicating
authority under the CGST Act or SGST Act/UTGST Act lies before the AA.

It is important to note that it is only the aggrieved person who can file
the appeal. Also, the appeal must be against a decision or order passed
under the Act.
(ii) Time limit for filing appeal
A person aggrieved by any decision/order of an adjudicating authority
can file an appeal to the AA within 3 months from the date of
communication of such decision/order.
(1) The adjudicating authority issued the adjudication order
on 23rd September and the same is communicated to the
taxpayer on 28th September. The relevant date for computing
the period of 3 months (for filing the appeal to AA) is 28th September
(date of communication of order) and not 23rd September.
The AA can condone the delay in filing of appeal by 1 month if it is
satisfied that there was sufficient cause for such delay [Section 107(4)].
(iii) Form for appeal to AA by the aggrieved person (taxpayer)
The appeal to the AA shall be filed in Form GST APL-01 either
electronically or otherwise as may be notified by the Commissioner and
a provisional acknowledgement shall be issued to the appellant
immediately. A certified copy of the decision/order appealed against
shall be submitted within 7 days of filing the appeal and a final
acknowledgement shall be issued thereafter.
(iv) Date of filing appeal
If the certified copy of the decision/order is submitted within 7 days from
the date of filing appeal in Form GST APL-01, the date of filing the appeal
shall be the date of the issue of the provisional acknowledgement. If the
said copy is submitted after 7 days, the date of filing the appeal shall be
the date of the submission of such copy.
The appeal shall be treated as filed only when the final
acknowledgement is issued.
(2) The appeal is filed and provisional acknowledgement
issued on 10th September. The taxpayer submits the certified
copy of the order sought to be appealed against on 15th
September (within 7 days). The date of filing appeal is 10th September.

(3) The appeal is filed and provisional acknowledgement

issued on 10th September. The taxpayer submits the certified
copy of the order sought to be appealed against on 25th
September (after seven days). The date of filing appeal is 25th
September.
(v) Mandatory pre-deposit for filing appeal
No appeal can be filed before the AA unless a specified amount of pre-
deposit is made by the appellant. The concept of pre-deposit is discussed
separately under Heading No. 7.
B. Application before the AA by the Department
At times, the Department itself may not agree with the
decision or order passed by the adjudicating authority.
Section 107(2) provides that in such cases, the
Department can also file an appeal (referred to as
‘review application’) before the AA.
(i) Orders against which the application can be
filed before the AA
The Commissioner may, on his own motion, or upon request from the
SGST/UTGST Commissioner, examine the record of any proceedings in
which an adjudicating authority has passed any decision/order under
the CGST Act or SGST Act/UTGST Act to satisfy himself about the
legality or propriety of such decision/order [Section 107(2)].
(ii) Time limit for filing the application
The Commissioner may, by order, direct any officer subordinate to him
to apply to the AA within 6 months from the date of communication of
the decision/order for the determination of such points arising out of
the said decision/order as may be specified by him.
The AA can condone the delay in filing of appeal by 1 month if it is
satisfied that there was sufficient cause for such delay.
(4) The adjudicating authority passed the order on 23rd
January (communicated same day to the Commissioner). The
Commissioner directs his subordinate officer to file a review
application with the AA till 23rd July (within 6 months from the date of
communication of order). However, the application could be filed only

on 3rd August. The AA can condone the delay in filing of appeal upto
23rd August (up to 1 month) if it is satisfied that there was sufficient
cause for such delay.
(iii) Form for application
The application shall be made in GST APL-03 either electronically or
otherwise as may be notified by the Commissioner.
(iv) Application to be treated as appeal
Such application shall be dealt with by the AA as if it were an appeal
made against the decision/order of the adjudicating authority [Section
107(3)].
There is no requirement of making a pre-deposit in the case of departmental
appeal.
C. Appeal process followed by AA
(i) Duties of the AA
The AA has to follow the principles of natural justice – such as hearing
the appellant, allowing reasonable adjournments (not more than 3),
permitting additional grounds of appeal (if found reasonable), etc.
(ii) Orders of the AA
 The AA can make further inquiry and pass its order (i.e. Order-in-
Appeal) which may confirm, modify or annul the decision/order
appealed against. However, the AA cannot refer the case back to
the adjudicating authority that passed the said decision/order.
 The AA can also increase the “rigour” of the order appealed
against by enhancing any fee or penalty or fine in lieu of
confiscation or confiscating goods of greater value or reducing
the amount of refund or ITC, but this can only be done after the
AA has given to the appellant a reasonable opportunity of
showing cause against the proposed order.
 If the AA is of the opinion that any tax has not
been paid or short-paid or erroneously
refunded, or where ITC has been wrongly
availed or utilized, no order requiring the
appellant to pay such tax or ITC shall be
passed unless the appellant is given notice to show cause against

the proposed order and the order is passed within the time limit
specified under section 73 or section 74.
 The Order-in-appeal shall be a “speaking order” i.e., it shall state
the points for determination, the decision thereon and the
reasons for the decision.
 The law provides an advisory time limit of 1 year from date of
filing of appeal for the AA to decide the appeal. The period of
stay ordered by any Court or Tribunal shall be excluded in
computing the period of 1 year.
(5) The adjudicating authority passed the order on
23rd January 2021 and it was communicated to the
taxpayer on the same day. The taxpayer filed the appeal
against the order with the AA on 16th February 2021. The AA
should decide the appeal by 16th February 2022, where it is
possible to do so.

January 2021 and it was communicated to the taxpayer
on the same day. The taxpayer filed the appeal against
the order with the AA on 16th February 2021. The appeal
proceedings before the AA are stayed by an order of a Court for
the period between 1st May 2021 and 30th June 2021. The period
of 61 days during which the stay was in operation will be excluded
for computing the period of 1 year within which the AA should
decide the appeal. Thus, the AA can pass the order by 18th April
2022.
 On disposal of the appeal, the AA shall communicate the order
passed by it to the appellant, respondent and to the adjudicating
authority.
 A copy of the order passed by the AA shall also be sent to the
jurisdictional Commissioner or the authority designated by him in
this behalf and the jurisdictional SGST/UTGST Commissioner or an
authority designated by him in this behalf.
 Every order passed by the AA shall be final and binding on the
parties unless the dispute is taken to a higher appellate forum.

D. Appointment of Appellate Authority

Any person aggrieved by any decision/order passed under GST law or an
officer directed to appeal against any decision/order passed under said law,
may appeal within 3 months (6 months in case of appeal by the Department)
from the date of communication of said decision/order as follows:
If the decision/order against

which the appeal is to be filed, Appellate Commissioner
is passed by the Additional or Authority (Appeals)
Joint Commissioner
If the decision/order against Any officer not

which the appeal is to be filed, Appellate below the rank
is passed by the Deputy or Authority of Joint
Assistant Commissioner or Commissioner
Superintendent (Appeals)
A summary of the provisions of section 107 is given at next page.
4. POWERS OF REVISIONAL AUTHORITY

[SECTION 108]
A. Orders which can be revised
(i) The GST laws also provide a mechanism of revision by the Revisional
Authority (RA) of the orders passed by its subordinate officers.
(ii) The RA may, on his own motion, or upon information received by him
or on request from the SGST/ UTGST Commissioner, call for and
examine the record of any proceedings. Here, ‘record’ includes all
records relating to any proceedings under the CGST Act available at the
time of examination by the RA.

Summary of the provisions of section 107
APPEALS TO APPELLATE AUTHORITY [SECTION 107]
The Commissioner may direct any Any person aggrieved by any

Officer subordinate to him to decision/order passed by an
apply to the AA to determine adjudicating authority passed under
specified points relating to legality the GST laws
and propriety of an order of any
adjudicating authority passed Time limit - Within 3 months from the
under the GST laws date of communication of the said
Time limit - Within 6 months from decision/order to the appellant. Delay
the date of communication of the of 1 month can be condoned by the AA
said decision/order. Delay of 1 Form of Appeal – GST APL 01
month can be condoned by the AA
Form of Application – GST APL 03
Pre-deposit of tax, interest, fine, fee, and
penalty arising from the impugned order, as
admitted by the appellant along with 10% of
the “tax in dispute”
The AA will give the appellant a chance to be heard.
The AA may allow the appellant during the hearing to add any ground of
appeal not specified in the grounds of appeal and can grant up to 3
adjournments.
The AA may confirm, modify, annul the decision or order appealed against
after making further inquiry, as necessary.
(iii) On examination of the case records, if RA is of the view that the decision
or order passed under the CGST Act/ SGST Act/ UTGST Act by any
officer subordinate to him
• is erroneous, in so far as it is prejudicial to the interest of the
revenue and is illegal or improper;

• has not taken into account material facts, whether available at the
time of issuance of the said order or not;
• 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.
(iv) Thereafter, the RA 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. Here,
‘decision’ includes intimation given by any officer lower in rank than the
RA.
Along with the order, the RA shall also issue a summary of the order
clearly indicating the final amount of demand confirmed.
(v) If the RA decides to pass an order which is likely to affect the person
adversely, he shall serve a notice on such person and give him a
reasonable opportunity of being heard.
(vi) Every revision order, subject to further appeal to the Tribunal, High
Court or Supreme Court, be final and binding on the parties.
B. Fetters to the powers of revision
The power of revision is subject to the condition that non-appealable orders and
decisions under section 121 cannot be revised [Section 121 which provides for
such orders/decisions is discussed under Heading 14 of this Chapter].
The RA shall not exercise the power of revision if:
(a) the order sought to be revised has been subject to an appeal before AA
or Tribunal or High Court or Supreme Court*; or
(b) the period of 6 months (from the date of communication of order) has
not yet expired or more than 3 years have expired after the passing of
the decision/order sought to be revised; or
(c) the order has already been taken for revision at an earlier stage; or
(d) the order sought to be revised is itself a revisional order.
*The RA may still pass an order on any point which has not been raised and
decided in an appeal before AA/Tribunal/High Court/Supreme Court, 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 from the date of initial order,
whichever is later.
(7) A taxpayer is served with an adjudication order on
25th May 2021. The RA can revise the order during the period
between 26th November 2021 (after expiry of 6 months) and
25 May 2024.
th
(8) ABC Pvt. Ltd. manufactures product ‘P’ and ‘Q’. The company
avails benefit of exemption notification in respect of product ‘P’ and
pays tax on product ‘Q’ @ 12%. Show cause notice was issued to
the company alleging that product ‘P’ was not eligible for exemption and
product ‘Q’ was liable to tax @ 18%. The adjudicating authority concluded
that the rate of tax in respect of product ‘Q’ was correct but the exemption
on product ‘P’ was being availed wrongly. Consequently, an order confirming
demand of ` 10 lakh was passed by the adjudicating authority on 15th January
2021.
The company filed an appeal against the order before the AA on
16th February 2021. The AA passed the order in favour of the company in
respect of product ‘P’ on 31st October 2021.
The RA can pass the revised order in respect of tax rate on product ‘Q’ before
31st October 2022 (1 year from the date of order passed by the AA) or
15th January 2024 (3 years from the date of adjudication order), whichever is
later. Thus, the RA can pass the revised order by 15th January 2024.
C. Period to be excluded in computing limitation period of 3 years
(i) If the decision/order sought to be revised
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 of 3 years

where proceedings for revision have been initiated by way of issue of
a notice under section 108 [Section 108(4)].
(ii) When the issuance of a revision order is stayed by the order of a Court
or Tribunal, the period of such stay shall be excluded in computing the
period of limitation of 3 years [Section 108(5)].
January 2021 and it was communicated to the taxpayer on the
same day. The RA calls for the records of the proceedings on
1st August 2021 (after expiry of 6 months) and started examining the
same. The revision order to be passed by the RA is stayed by an order
of the High Court for the period between 1st September 2021 and 31st
October 2021. The period of 61 days during which the stay was in
operation will be excluded for computing the period of 3 years within
which the RA should pass the revision order. Thus, the RA can pass the
order by 25th March 2024.
✪ The provisions related to revision empower the superior

authorities to revise the orders or decisions passed by their sub-
ordinate officers which are found to be improper.
✪ Since AA also has the power to annual, enhance etc. (as

discussed in Heading 3), in order to avoid any duplication of proceedings,
an order which is subject to appeal cannot be revised. However, the
revisional order can be passed on the points that are not raised or decided
in an appeal. Accordingly, the law provides for extension of the time limit
for revising the orders that are subject matter of an appeal. Extension to
the prescribed limitation also applies where the revision proceedings are
stayed.
✪ Revision proceedings can only be taken once with respect to an order

and a revision order cannot be revised.

D. Officers authorized as Revisional Authority

The CBIC has authorized the following officers as Revisional Authority:
For decisions/orders passed by Principal
the Additional/Joint Revisional Commissioner/
Commissioner Authority Commissioner
For decisions/orders passed by

the Deputy Commissioner Revisional Additional/Joint
/Assistant Commissioner/ Authority Commissioner
Superintendent
5. APPELLATE TRIBUNAL UNDER GST LAWS

[SECTIONS 109-111]
The Tribunal is the second level of appeal, where appeals can be filed against the
orders-in-appeal passed by the AA or order in revision passed by RA, by any person
aggrieved by such an Order-in-Appeal/ Order-in-Revision.
A. Constitution and structure of Appellate Tribunal [Section 109]

(i) The law envisages constitution of a two different sets of Tribunal
benches, both functioning at the parallel level, i.e. (a) National Bench
and benches thereof (i.e., Regional Benches), and (b) the State Bench
and benches thereof (i.e., Area Benches). Both these constituents are
called “Goods and Services Tax Appellate Tribunal”.
(ii) Jurisdiction of the two constituents of the GST Tribunal is different, i.e.:
- If place of supply is one of the issues in dispute, then the National
Bench/ Regional benches of the Tribunal will have jurisdiction to
hear the appeal.
- If the dispute relates to issues other than the place of supply, then
the State/Area Benches will have the jurisdiction to hear the
appeal.
(iii) An appeal against the decision of the National Bench lies directly to the
Supreme Court and an appeal from the decision of the State Bench will
lie to the jurisdictional High Court, on substantial questions of law.

(iv) A diagrammatic representation of the composition of the Appellate

Tribunal is shown below.
Goods And Services Tax Appellate

Triubnal
National/ Regional/
State Bench Area Bench
Technical Technical Technical

Judicial Technical
President Member Member Member
Member
Member (State)
(Center) (State) (Center)
(v) The appointments to the Tribunal and functioning shall be in the

manner prescribed under sections 110 and 111 of the CGST Act. On
ceasing to hold office, the appointees to the Appellate Tribunal shall
not be entitled to appear, act or plead before the Appellate Tribunal.
(vi) In the absence of a Member in any Bench due to vacancy or otherwise,
any appeal may, with the approval of the President or, as the case may
be, the State President, be heard by a Bench of two Members.
However, any appeal where the tax or ITC involved or the difference in
tax or ITC 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,
be heard by a bench consisting of a single member.
B. Procedure before Appellate Tribunal [Section 111]
(i) The Appellate Tribunal shall not be bound by the procedure laid down
in the Code of Civil Procedure, 1908. However, it shall be guided by the
principles of natural justice and shall have power to regulate its own
procedure.
(ii) The Appellate Tribunal shall have the same powers as are vested in a
civil court under the Code of Civil Procedure, 1908 while trying a suit in
respect of the following matters, namely:—
(a) summoning and enforcing the attendance of any person and
examining him on oath;
(b) requiring the discovery and production of documents;

(c) receiving evidence on affidavits;

(d) 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;
(e) issuing commissions for the examination of witnesses or
documents;
(f) dismissing a representation for default or deciding it ex parte;
(g) setting aside any order of dismissal of any representation for
default or any order passed by it ex parte; and
(h) any other matter which may be prescribed.
(iii) Order of the Appellate Tribunal may be enforced in the same manner
as if it were a decree made by a court in a suit pending therein. The
Appellate Tribunal can send for execution of its orders to the court
within the local limits of whose jurisdiction,—
(a) in the case of an order against a company, the registered office of
the company is situated; or
(b) in the case of an order against any other person, the person
concerned voluntarily resides or carries on business or personally
works for gain.
(iv) All proceedings before the Appellate Tribunal shall be deemed to be
judicial proceedings within the meaning of sections 193 and 228, and
for the purposes of section 196 of the Indian Penal Code. The Appellate
Tribunal shall be deemed to be civil court for the purposes of section
195 and Chapter XXVI of the Code of Criminal Procedure, 1973.
6. APPEAL TO APPELLATE TRIBUNAL

[SECTIONS 112 & 113]
A. Appeal by the aggrieved person (taxpayer)
(i) Orders appealable to Appellate Tribunal
Any person aggrieved by an order passed against him by an AA or RA
under CGST Act/SGST Act/ UTGST Act may appeal to the Appellate
Tribunal.


The appeal can be filed before the Appellate Tribunal within 3 months
from the date on which the order sought to be appealed against is
communicated to the person preferring the appeal.
The Tribunal can condone the delay of up to 3 months beyond the
specified time period of 3 months, if it is satisfied that there was
sufficient cause for the delay.
(iii) Form for filing appeal
The appeal shall be filed in Form GST APL-05
either electronically or otherwise as may be
notified by the Registrar on the common portal
and a provisional acknowledgement shall be
issued to the appellant immediately. A certified
copy of the decision/order appealed against
shall be submitted to the Registrar within 7 days of filing the appeal
and a final acknowledgement shall be issued thereafter.
(iv) Date of filing appeal
If the certified copy of the decision/order is submitted within 7 days from
the date of filing appeal in GST APL-05, the date of filing the appeal shall
be the date of the issue of the provisional acknowledgement. However,
if the said copy is submitted after 7 days, the date of filing the appeal
shall be the date of the submission of such copy.
The appeal shall be treated as filed only when the final
acknowledgement is issued.
(v) Power of Tribunal to refuse to admit an appeal
The Appellate Tribunal can refuse to admit an appeal if
 the tax or ITC involved or
 the difference in tax or ITC involved or
 the amount of fine, fee or penalty determined by such order
does not exceed ` 50,000.
(vi) Memorandum of cross objections
The law also provides for filing of cross-objections by the respondent
against such part of the order against which the respondent may
initially not have chosen to file an appeal.

It is provided that on receipt of notice that an appeal has been filed (by
the appellant), the party against whom the appeal has been preferred
(i.e. the respondent) may, notwithstanding, that he may not have
appealed against such order or any part thereof, file within 45 days a
memorandum of cross-objections in GST APL-06 against any part of the
order appealed against and such memorandum shall be disposed of by
the Appellate Tribunal as if it were an appeal presented within the time
specified for filing the initial appeal.
The Tribunal can condone the delay of up to 45 days beyond the
specified time period of 45 days, if it is satisfied that there was sufficient
cause for the delay.
(vii) Fees for filing appeal
The fees for filing of appeal or restoration of appeal shall be ` 1,000 for
every ` 1,00,000 of tax or ITC involved or the difference in tax or ITC
involved or the amount of fine, fee or penalty determined in the order
appealed against. However, the fee shall not exceed ` 25,000.
There shall be no fee for application made before the Appellate Tribunal
for rectification of errors.
(viii) Mandatory pre-deposit for filing appeal
No appeal can be filed before the Appellate Tribunal unless a specified
amount of pre-deposit is made by the appellant. The concept of pre-
deposit is discussed separately under Heading No. 7.
B. Departmental appeal
(i) The Commissioner may, on his own motion, or upon request from the
SGST/UTGST Commissioner, examine the record of any order passed by
the AA or RA under the CGST Act/SGST Act/ UTGST Act for the purpose
of satisfying himself as to the legality or propriety of such order.
(ii) The Commissioner may, by order, direct any officer subordinate to him
to apply to the Appellate Tribunal within 6 months from the date on
which the said order has been passed for determination of such points
arising out of the said order as may be specified him
(iii) The application shall be made in GST APL-07 either electronically or
otherwise on the common portal.

(iv) Such application shall be dealt with by the Appellate Tribunal as if it

were an appeal made against the order of the AA or RA.
There is no requirement of making a pre-deposit in the case of departmental
appeal.
C. Orders of the Appellate Tribunal [Section 113]
(i) The Tribunal, after hearing both sides may
 pass such orders thereon as it thinks fit, confirming, modifying
or annulling the decision or order appealed against or
 refer the case back to the AA or to the RA, 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.
(ii) For reasons of natural justice (reasonable opportunity), it is also
provided that the Tribunal may, if sufficient cause is shown, grant up to
3 adjournments to hearing of appeal to either side.
(iii) The law provides an advisory time limit of 1 year from the date of filing
of appeal for the Tribunal to decide the appeal.
(iv) The Tibunal shall send a copy of its order to
• AA/RA/Original adjudicating authority
• Appellant
• Jurisdictional Commissioner or the SGST/UTGST Commissioner

(v) Every order passed by the Tribunal shall be final and binding on the
parties unless the dispute is taken to a higher appellate forum.
Rectification of errors [Section 113(3)]
 The Tribunal can correct its own order for any apparent mistakes, but it
has no power of review.
 The Tribunal may amend any order passed by it so as to rectify any error
apparent on the face of the record if such error is noticed in the order
by its own accord, or is brought to its notice by the Commissioner or
SGST/UTGST Commissioner or the other party to the appeal within a
period of 3 months from the date of the order.

 No amendment which has the effect of enhancing an assessment or

reducing a refund or ITC or otherwise increasing the liability of the other
party, shall be made, unless the party has been given an opportunity of
being heard.
Present status of the GST Appellate Tribunal

The Division Bench of Madras High Court in the case of Revenue Bar Association
v. Union of India (2019 SCC Online Mad 8910) has struck down the composition
of the Appellate Tribunal as it comprises of more number of technical members
than judicial members. Consequently, the Appellate Tribunal has not been
constituted so far and therefore, an appeal cannot be filed before it within three
months from the date on which the order sought to be appealed against is
communicated.
To remove difficulty arising in giving effect to the above provision of the Act, the
Government has issued the CGST (Ninth Removal of Difficulties) Order, 2019
dated 03.12.2019. It has been provided vide the said Order that the appeal to
Tribunal can be made within three months (six months in case of appeals by the
Government) from the date of communication of order or date on which the
President or the State President, as the case may be, of the Appellate Tribunal
enters office, whichever is later.
Hence, as of now, the prescribed time limit to make application to Appellate
Tribunal will be counted from the date on which President or the State President
enters office.
Since the Appellate Tribunal is not functioning currently, aggrieved parties need
to file writ petition before the High Court if they want to seek any relief (stay of
demand etc.)
7. MANDATORY PRE-DEPOSIT
The right to appeal is a statutory right which operates within the limitation placed
on it by the law. One such limitation that is generally applied basis this principle in
tax statutes is that an appellant must first deposit the adjudged dues before his
appeal can be heard.
However, an appellant may succeed in his appeal, and hence it would (in retrospect)
be unfair to saddle him with this financial burden. To balance these factors, tax

laws generally mandate “pre-deposits” so as to discourage frivolous appeals and

also safeguard the interest of revenue.
Section 107(6) provides that no appeal shall be filed before the AA, unless the
appellant has paid—
(a) full amount of tax, interest, fine, fee and penalty arising from the impugned
order, as is admitted by him; and
(b) a sum equal to 10% of the remaining amount of tax in dispute arising from
the impugned order, subject to a maximum of ` 25 crore (` 50 crore in case
of IGST*).
* As per section 20 of the IGST Act.
The payment of pre-deposit ensures staying of the recovery proceedings for the
balance amount of demand in dispute.
(10) ABC Pvt. Ltd. received a show cause notice demanding tax of ` 10
lakh, penalty of ` 10 lakh and interest of ` 2 lakh. The adjudicating
authority passed the order confirming the entire demand. While ABC Pvt.
Ltd. admits the tax liability of ` 5 lakh and interest of ` 50,000, it wishes to file an
appeal to litigate the balance demand amount. The amount of pre-deposit to be
made by ABC Pvt. Ltd. for filing the appeal to the AA is computed as under-
(i) Full amount of tax, interest and penalty as admitted by the company, i.e.
` 5.5 lakh
(ii) 10% of the tax in dispute, i.e. ` 50,000 (10% of ` 5 lakh)
Therefore, total pre-deposit to be made by the company is ` 6 lakh. On payment
of such pre-deposit, the recovery proceedings for the balance amount of ` 16 lakh
will get stayed.
(11) ABC Pvt. Ltd. received a show cause notice demanding IGST of ` 600
crore, penalty of ` 100 crore and interest of ` 10 crore. The adjudicating
authority passed the order confirming the entire demand. While ABC Pvt.
Ltd. admits the tax liability, penalty and interest of ` 50 crore, ` 10 crore and
` 1 crore respectively, it wishes to file an appeal to litigate the balance demand
amount. The amount of pre-deposit to be made by ABC Pvt. Ltd. for filing the
appeal to the AA is computed as under-
` 61 crore

(ii) 10% of the tax in dispute, i.e. ` 55 crore (10% of ` 550 crore) subject to a
maximum of ` 50 crore
Therefore, total pre-deposit to be made by the company is ` 61 crore (total liability
admitted by the company) plus ` 50 crore, i.e. ` 111 crore. On payment of such
pre-deposit, the recovery proceedings for the balance amount of ` 599 crore will
get stayed.
Section 112(8) lays down that no appeal can be filed before the Tribunal, unless the
appellant deposits 1
(a) full amount of tax, interest, fine, fee and penalty arising from the impugned
order, as is admitted by him, and
(b) 20% of the remaining amount of tax in dispute, in addition to the amount
deposited before the AA, arising from the said order, subject to a maximum
of ` 50 crore (` 100 crore in case of IGST), in relation to which appeal has
been filed.
* As per section 20 of the IGST Act
Where the appellant has made the pre-deposit, the recovery proceedings for the
balance amount of demand in dispute shall be deemed to be stayed till the disposal
of the appeal.
Authority Pre-deposit
When the tax involved is CGST When the tax involved is IGST
AA Admitted CGST liability in full + Admitted IGST liability in full +

10% of the CGST in dispute, 10% of the IGST in dispute,
subject to a maximum of 25 subject to a maximum of 50
crore rupees* crore rupees
Appellate Admitted CGST liability in full + Admitted IGST liability in full +

Tribunal 20% of the CGST in dispute, 20% of the IGST in dispute,
in addition to the amount in addition to the amount
deposited before AA as pre- deposited before AA as pre-
deposit, subject to a maximum
of 100 crore rupees
1
It may be noted that the Appellate Tribunal has not been constituted so far and thus, no appeals
can be filed before it.

deposit, subject to a maximum

of 50 crore rupees*
*Equivalent amount of SGST is also required to be deposited. Therefore, whether the

appeal involves CGST+SGST or IGST, in both the cases, the aggregate amount of tax
to be deposited or maximum amount (excluding the admitted liability) is the same.
For example, for the appeal before AA involving intra-state supplies, the maximum
amount of pre-deposit (excluding the admitted liability) would be ` 25 crore for CGST
+ ` 25 crore for SGST (i.e. total ` 50 crore); whereas for the appeal involving inter-
state supplies it would be ` 50 crore for IGST.
(12) ABC Pvt. Ltd. received an adjudication order demanding CGST and
SGST of ` 200 crore each. ABC Pvt. Ltd. filed an appeal to AA contesting
the entire demand. The amount of pre-deposit made by the company for
filing the appeal to the AA is ` 20 crore [10% of ` 200 crore (tax in dispute)].
Equivalent amount has been paid for SGST too. Thus, a total of ` 40 crore has been
paid by the company as pre-deposit for filing the appeal to the AA. The AA heard
the appeal and decided in favour of the department confirming the entire demand.
The company filed an appeal to the Appellate Tribunal. The amount of pre-deposit
made by the company for filing the appeal before the Tribunal is ` 40 crore [20%
of ` 200 crore (tax in dispute)]. Equivalent amount has been paid for SGST too.
Thus, a total of ` 80 crore has been paid by the company as pre-deposit for filing
the appeal to the Appellate Tribunal.
(13) ABC Pvt. Ltd. wishes to file an appeal with the Appellate Tribunal
against an order of the AA demanding IGST of ` 1200 crore. The company
admits the liability of ` 100 crore but wishes to litigate the balance
demand amount and thus, files an appeal with the Appellate Tribunal. The amount
of pre-deposit to be made by ABC Pvt. Ltd. for filing the appeal to the Appellate
Tribunal is computed as under-
` 100 crore
(ii) 20% of the tax in dispute, i.e. ` 220 crore (20% of ` 1100 crore) subject to a
maximum of ` 100 crore
Therefore, total pre-deposit to be made by the company is ` 100 crore (total liability
admitted by the company) plus ` 100 crore, i.e. ` 200 crore.

Interest on refund of pre-deposit [Section 115]

If the pre-deposit made by the appellant before the AA or the Tribunal is required
to be refunded consequent to any order of the AA or of the Tribunal, as the case
may be, interest as provided under section 56 shall be payable from the date of
payment of the amount (and not from the date of the order of the AA or of the
Tribunal) till the date of refund of such amount.
8. PRODUCTION OF ADDITIONAL EVIDENCE

BEFORE THE APPELLATE AUTHORITY OR
THE APPELLATE TRIBUNAL
(i) Rule 112 of the CGST Rules lays down that the appellant shall not be allowed
to produce before the AA or the Tribunal any evidence, whether oral or
documentary, other than the evidence produced by him during the course of
the proceedings before the adjudicating authority or, as the case may be, the
AA.
(ii) Exceptions
However, the rule provides the following exceptional circumstances where
the production of additional evidence before the AA or the Tribunal could be
allowed:
(a) where the adjudicating authority or, as the case may be, the AA has
refused to admit evidence which ought to have been admitted; or
(b) where the appellant was prevented by
sufficient cause from producing the evidence
which he was called upon to produce by the
adjudicating authority or, as the case may be,
the AA; or
(c) where the appellant was prevented by sufficient cause from producing
before the adjudicating authority or, as the case may be, the AA any
evidence which is relevant to any ground of appeal; or
(d) where the adjudicating authority or, as the case may be, the AA has
made the order appealed against without giving sufficient opportunity
to the appellant to adduce evidence relevant to any ground of appeal.
(iii) No additional evidence shall be admitted unless the AA or the Appellate
Tribunal records in writing the reasons for its admission.

(iv) The AA or the Appellate Tribunal shall not take any additional evidence unless
the adjudicating authority or an officer authorised in this behalf by the said
authority has been allowed a reasonable opportunity -
(a) to examine the evidence or document or to cross-examine any witness
produced by the appellant; or
(b) to produce any evidence or any witness in rebuttal of the additional
evidence produced by the appellant.
(v) The provisions of this rule shall not affect the power of the AA or the
Appellate Tribunal to direct the production of any document, or the
examination of any witness, to enable it to dispose of the appeal.
9. APPEARANCE BY AUTHORISED
REPRESENTATIVE [SECTION 116]
Any person who is entitled or required to appear before a GST Officer or the AA or
the Tribunal, in connection with any proceedings under the CGST Act, may appear
through an authorised representative (except when he is required under the Act to
appear personally for examination on oath or affirmation).
(i) Who can be authorized representative?
Broadly an authorised representative can be a relative, a regular employee,
an advocate, a chartered accountant, a cost accountant, a company secretary,
or a GST Practitioner. It is also provided that specified indirect tax gazetted
officers can appear as authorised representative after one year from the date
of their retirement/resignation.
(ii) Disqualifications for authorized representative
The GST law also provides some disqualifications for an authorised
representative. Section 116(3) lays down that no person,—
(a) who has been dismissed or removed from Government service; or
(b) who is convicted of an offence connected with any proceedings under
the CGST Act/ SGST Act/ UTGST Act/IGST Act or under the earlier law
or under any of the Acts passed by a State Legislature dealing with the
imposition of taxes on sale of goods or supply of goods and/or services;
or

(c) who is found guilty of misconduct by the prescribed authority;

(d) who has been adjudged as an insolvent,
shall be qualified to represent any person—
(i) for all times in case of persons referred to in clauses (a), (b) and (c); and
(ii) for the period during which the insolvency continues in the case of a
person referred to in clause (d).
(iii) Any person who has been disqualified under the provisions of the SGST Act/
UTGST Act shall be deemed to be disqualified under the CGST Act also.
10. APPEAL TO THE HIGH COURT

[SECTION 117]
(i) Appealable orders
The law provides that any person (whether
department or other person), aggrieved by any order The Appellate
passed by the State Bench or Area Bench of the Tribunal is the
Tribunal, may file an appeal to the High Court. final fact
finding
The High Court may admit such appeal if it is satisfied authority.
that the case involves a substantial question of law.
✪ Substantial question generally mean question that must

be answered by applying relevant legal principles to
interpretation of law. This is distinct from a question of fact
that must be answered by evaluating the relevant facts or
evidences as well as inferences arising from those facts.
✪ Unlike answer to question of facts which are dependent on
particular circumstances or factual situations, answers to questions of
law being based on legal principles, can be applied to many situations.
Recently, the Supreme Court, in the matter of Nazir Mohamed v. J. Kamala

And Ors. on 27 August, 2020 pronounced that to be “substantial”, a
question of law must be debatable, not previously settled by the law of
the land or any binding precedent, and must have a material bearing on
the decision of the case and/or the rights of the parties before it, if
answered either way.

For instance, the question as regards applicability of an exemption

notification to a taxpayer due to two possible interpretations of the
notification could be a question of law. Conversely, determination of the
quantum of the exemption available to a taxpayer could be a question of fact.
Appeals to the High Court are to be filed within 180 days from the date on
which the order appealed against is received by the aggrieved person.
However, the High Court has the power to condone the delay on being
satisfied of sufficient cause for the same.
(iii) Form of appeal
The appeal shall be filed in GST APL 08.
(iv) Decision of the High Court
On being satisfied that a substantial question of law is involved, the High
Court shall formulate that question, and the appeal shall be heard only on
the question so formulated. However, the High Court has the power to
hear the appeal on any other substantial question of law, if it is satisfied
that the case involves such question.
The High Court shall decide the questions of law so formulated and deliver
such judgment thereon containing the grounds on which such decision is
founded and may award such cost as it deems fit. The High Court may
determine any issue which has not been determined by the Tribunal (State
Bench/Area Bench) or has been wrongly determined by the Tribunal, by
reason of a decision on such question of law.
The Code of Civil Procedure relating to appeals to High Court shall apply
to the appeals before the High Court under this section.
The appeal shall be heard by a bench of not less than two judges, and the
points on which they differ, if any, shall, then, be heard, upon that point
only by one or more judges of the High Court. The final judgment on the
point shall be decided by majority of all Judges who heard the case,
including those first heard it.
Pre-deposit of all tax dues is required to be made; otherwise the inherent
powers of the High Court have to be invoked for obtaining a stay pending
disposal of the appeal.

11. APPEAL TO THE SUPREME COURT

[SECTIONS 118 - 119]
The law provides for appeals to the Supreme Court from
any judgment or order passed by the High Court, in any
case which, on its own motion or on an application made
by or on behalf of the party aggrieved, immediately after
passing of the judgment or order, the High Court certifies
to be a fit one, for appeal to the Supreme Court.
A (direct) appeal shall also lie to the Supreme Court from any orders passed by
the National/Regional Bench of the Tribunal.
The provision of the Code of Civil Procedure
relating to appeals to the Supreme Court
shall apply to appeals before the Supreme
The National/ Regional
Court under this section. Pre–deposit of all
Bench of the Tribunal has
tax dues will be required unless stay is
jurisdiction to entertain
obtained from the Supreme Court pending
appeal if the dispute or
the disposal of the appeal. one of the issues in dispute
The Supreme Court can vary, confirm or involves place of supply.
reverse the judgement of the High Court or
the Tribunal as the case may be and may
award costs. It can also remand the matter
for fresh consideration.
12. SUMS DUE TO BE PAID NOTWITHSTANDING

APPEAL ETC. [SECTION 119]
Sums due to the Government as a result of an order passed by the Appellate
Tribunal or the High Court, notwithstanding that an appeal has been preferred to
the High Court or the Supreme Court, shall be payable in accordance with the order
so passed.

13. APPEAL NOT TO BE FILED IN CERTAIN CASES

[SECTION 120]
In tax disputes, the tax department is always an opposite party. From a practical
standpoint, many appeals at the tribunal, High Court, Supreme Court levels are
instituted by the tax department.
This section contains provisions that aim at limiting the filing of appeals by the
CGST officers in non-complex matters or the matters involving small tax amount.
While providing for non-filing of appeal by the CGST officers in certain cases, this
section also provides that such steps should not stop the tax department to file
appeal in other similar cases.
(i) The Board may, on the recommendations of the GST Council, issue orders or
instructions or directions fixing monetary limits for regulating filing of appeal
or application by the CGST officer.
(ii) Non-filing of appeal/application by a CGST officer on account of such
monetary limits fixed by the Board shall not preclude such officer from filing
appeal or application in any other case involving the same or similar issues
or questions of law.
(iii) No person, who is a party in application or appeal can contend that the CGST
Officer has acquiesced in the decision on the disputed issue by not filing an
appeal or application (on account of monetary limits).
(iv) The Appellate Tribunal or Court hearing such appeal or application shall have
regard to circumstances for non-filing of appeal or application by the CGST
officer on account of monetary limits fixed by the Board.
14. NON APPEALABLE DECISIONS AND ORDERS

[SECTION 121]
Section 121 lays down that no appeals whatsoever can be filed against the following orders:-
(a) an order of the Commissioner or other authority empowered to direct transfer
of proceedings from one officer to another officer;
(b) an order pertaining to the seizure or retention of books of account, register
and other documents; or
(c) an order sanctioning prosecution under the Act; or
(d) an order passed under section 80 (payment of tax in instalments).

TEST YOUR KNOWLEDGE

1. Does CGST law provide for any appeal to a person aggrieved by any order or
decision passed against him by an adjudicating authority under the CGST Act?
Explain the related provisions under the CGST Act.
2. Describe the provisions relating to Departmental appeal to Appellate Authority

under section 107.
3. With reference to sections 107(6) and 112(8), specify the amount of mandatory
pre-deposit which should be made along with every appeal made before the
Appellate Authority and the Appellate Tribunal. Does making the pre-deposit
have any impact on recovery proceedings?
4. With reference to section 108, elaborate whether a CGST/SGST authority can
revise an order passed by his subordinates.
5. The Appellate Tribunal has the discretion to refuse to admit any appeal.
Examine the correctness of the above statement.
6. In an order dated 20th August issued to GH (P) Ltd., the Joint Commissioner of
CGST has confirmed IGST demand of ` 280 crore. The company is disputing
the entire demand of IGST and wants to know the amount of pre-deposit it has
to make under the IGST Act for filing an appeal before the Appellate Authority
against the order of the Joint Commissioner.
Assuming that the Appellate Authority also confirms the order of the Joint
Commissioner and the company wants to file an appeal before the Appellate
Tribunal against the order of the Appellate Authority, determine the amount of
pre-deposit to be made by the company for filing the said appeal.
7. With reference to the provisions of section 121, specify the orders against which
no appeals can be filed.
8. Mr. A had filed an appeal before the Appellate Tribunal against an order of the
Appellate Authority where the issue involved relates to place of supply. The
order of Appellate Tribunal is also in favour of the Department. Mr. A now
wants to file an appeal against the decision of the Appellate Authority as he
feels the stand taken by him is correct.
You are required to advise him suitably with regard to filing of an appeal before
the appellate forum higher than the Appellate Tribunal.

9. Pursuant to audit conducted by the tax authorities under section 65, a show
cause notice was issued to Home Furnishers, Surat, a registered supplier,
alleging that it had wrongly availed the input tax credit without actual receipt
of goods for the month of July. In the absence of a satisfactory reply from Home
Furnishers, Joint Commissioner of Central Tax passed an adjudication order
dated 20th August (received by Home Furnishers on 22nd August) confirming a
tax demand of ` 50,00,000 (i.e., CGST 25,00,000 and SGST 25,00,000) and
imposing a penalty of equal amount under section 122.
Home Furnishers does not agree with the order passed by the Joint
Commissioner. It decides to file an appeal with the Appellate Authority against
the said adjudication order. It has approached you for seeking advice on the
following issues in this regard:
(1) Can Home Furnishers file an appeal to Appellate Authority against the
adjudication order passed by the Joint Commissioner of Central Tax? If
yes, till what date can the appeal be filed?
(2) Does Home Furnishers need to approach both the Central and State
Appellate Authorities for exercising its right of appeal?
(3) Home Furnishers is of the view that there is no requirement of paying
pre-deposit of any kind before filing an appeal with the Appellate
Authority. Give your opinion on the issue.
10. With reference to the provisions of section 120, list the cases in which appeal is
not to be filed and also specify other relevant provisions in this respect.
11. XY Company received an adjudication order passed by the Assistant
Commissioner of Central Tax on 1st November under section 73 wherein it was
decided as follows:
CGST+SGST due ` 6,00,000

Interest @ 18% p.a. for number of delayed days
Penalty ` 60,000
The taxpayer filed an appeal before the Appellate Authority on 26th November.
Determine the amount of pre-deposit to be made by the company for filing the appeal.
Whether your answer would be different if the taxpayer appeals only against part of
the demanded amount say ` 4,00,000 and admits the balance liability of tax
amounting to ` 2,00,000 and proportionate penalty arising from the said order?

ANSWERS
1. Yes, any person aggrieved by any order or decision passed by an adjudicating
authority under the CGST Act has the right to appeal to the Appellate
Authority under section 107. The appeal should be filed within 3 months from
the date of communication of such order or decision. However, the Appellate
Authority has the power to condone the delay of up to 1 month in filing the
appeal if there is sufficient cause for the delay. The appeal can be filed only
when the admitted liability and 10% of the disputed tax amount is paid as
pre-deposit by the appellant.
However, no appeal can be filed against the following orders in terms of
section 121:-
(a) an order of the Commissioner or other authority empowered to direct
transfer of proceedings from one officer to another officer;
(b) an order pertaining to the seizure or retention of books of account,
register and other documents; or
(c) an order sanctioning prosecution under the Act; or
(d) an order passed under section 80 (payment of tax in installments).
2. Section 107(2) provides that Department can file a “review
application/appeal” with the Appellate Authority.
The Commissioner may, on his own motion, or upon request from the
SGST/UTGST Commissioner, examine the record of any proceedings in which
an adjudicating authority has passed any decision/order to satisfy himself as
to the legality or propriety of the said decision /order. The Commissioner
may, by order, direct any officer subordinate to him to apply to the Appellate
Authority within 6 months from the date of communication of the said
decision/order for the determination of such points arising out of the said
decision/order as may be specified him.
The AA can condone the delay in filing of appeal by 1 month if it is satisfied
that there was sufficient cause for such delay [Section 107(4)].
Such application shall be dealt with by the AA as if it were an appeal made
against the decision/order of the adjudicating authority [Section 107(3)].
There is no requirement of making a pre-deposit in case of departmental
appeal.
3. Section 107(6) provides that no appeal shall be filed before the Appellate
Authority, unless the appellant has paid—

(a) full amount of tax, interest, fine, fee and penalty arising from the
impugned order, as is admitted by him; and
(b) a sum equal to 10% of the remaining amount of tax in dispute arising
from the impugned order, subject to a maximum of ` 25 crore.
Section 112(8) lays down that no appeal can be filed before the Appellate
Tribunal, unless the appellant deposits 2
(b) 20% of the remaining amount of tax in dispute, in addition to the
amount deposited before the AA, arising from the said order, subject
to a maximum of ` 50 crore, in relation to which appeal has been filed.
The above limits are applicable for the pre-deposits to be made under the
CGST Act. Equal amount of pre-deposit is payable under the respective SGST
Act as well.
Where the appellant has made the pre-deposit, the recovery proceedings for
the balance amount shall be deemed to be stayed till the disposal of the
appeal.
4. Section 2(99) defines “Revisional Authority” as an authority appointed or
authorised under the CGST Act for revision of decision or orders referred to
in section 108.
Section 108 of the Act authorizes such “revisional authority” to call for and
examine any order passed by his subordinates and in case he considers the
order of the lower authority to be erroneous in so far as it is prejudicial to
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, he may, if necessary, can revise the order after giving
opportunity of being heard to the person concerned. The “revisional
authority” can also stay the operation of any order passed by his subordinates
pending such revision.
The “revisional authority” shall not revise any order if-
(a) the order has been subject to an appeal under section 107 or under
section 112 or under section 117 or under section 118; or
2
It may be noted that the Appellate Tribunal has not been constituted so far and thus, no appeals
can be filed before it.

(b) the period specified under section 107(2) has not yet expired or more
than 3 years have expired after the passing of the decision or order
sought to be revised.
(c) the order has already been taken up for revision under this section at
any earlier stage.
(d) the order is a revisional order
5. The statement is partially correct.
Though the Appellate Tribunal does have the power to refuse to admit an
appeal, it cannot refuse to admit ANY appeal. It can refuse to admit an appeal
where –
o the tax or input tax credit involved or
o the difference in tax or the difference in input tax credit involved or
o the amount of fine, fees or penalty determined by such order,
does not exceed ` 50,000.
6. Section 107(6) read with section 20 of the IGST Act provides that no appeal shall
be filed with the Appellate Authority unless the applicant has paid in full, such part
of the amount of tax, interest, fine, fee and penalty arising from the impugned
order, as is admitted by him and a sum equal to 10% of the remaining amount of
tax in dispute arising from the said order subject to a maximum of ` 50 crore.
Thus, the amount of pre-deposit for filing an appeal with Appellate Authority
cannot exceed ` 50 crore (for tax in dispute) where IGST demand is involved.
In the given case, the amount of pre-deposit for filing an appeal with the
Appellate Authority against the order of Joint Commissioner, where entire
amount of tax is in dispute, is:
(i) ` 28 crore [10% of the amount of tax in dispute, viz. ` 280 crore]
or
(ii) ` 50 crore,
whichever is less.
= ` 28 crore.
Further, section 112(8) provides that no appeal shall be filed with the
Appellate Tribunal unless the applicant has paid in full, such part of the
amount of tax, interest, fine, fee and penalty arising from the impugned order,
as is admitted by him and a sum equal to 20% of the remaining amount of
tax in dispute, in addition to the amount paid as pre-deposit while filing

appeal to the Appellate Authority, arising from the said order subject to a
maximum of ` 100 crores.
Thus, in the given case, the amount of pre-deposit for filing an appeal with
the Appellate Tribunal against the order of the Appellate Authority, where
entire amount of tax is in dispute, is:
(i) ` 56 crores [20% of the amount of tax in dispute, viz. 280 crores]
or
(ii) ` 100 crores,
whichever is less.
= ` 56 crores.
7. As per section 121, no appeal shall lie against any decision taken or order
passed by a CGST officer if such decision taken or order passed relates to any
one or more of the following matters, namely:—
(a) an order of the Commissioner or other authority empowered to direct
transfer of proceedings from one officer to another officer; or
(b) an order pertaining to the seizure or retention of books of account,
register and other documents; or
(c) an order sanctioning prosecution under the CGST Act; or
(d) an order passed under section 80 (payment of tax in instalments).
8. As per section 117(1), an appeal against orders passed by the State Bench or
Area Benches of the Tribunal would lie to the High Court if the High Court is
satisfied that such an appeal involves a substantial question of law.
However, appeal against orders passed by the National Bench or Regional
Benches of the Tribunal would lie to the Supreme Court and not High Court.
As per section 109(5) of the Act, only the National Bench or Regional Benches
of the Tribunal can decide appeals where one of the issues involved relates
to the place of supply.
Since the issue involved in Mr. A’s case relates to place of supply, the appeal
in his case would have been decided by the National Bench or Regional Bench
of the Tribunal. Thus, Mr. A will have to file an appeal with the Supreme Court
and not with the High Court.
9. (1) An appeal against a decision/order passed by any adjudicating
authority under the CGST Act or SGST Act/ UTGST Act is appealable
before the Appellate Authority [Section 107(1)]. Thus, Home Furnishers

can file an appeal to Appellate Authority against the adjudication order

passed by the Joint Commissioner of Central Tax.
Further, such appeal can be filed within 3 months from the date of
communication of such decision/order [Section 107(1)]. Thus, Home
Furnishers can file the appeal to Appellate Authority on or before
22nd November. Further, the Appellate Authority can also condone the
delay in filing of appeal by 1 month if it is satisfied that there was
sufficient cause for such delay [Section 107(4)].
(2) GST law makes provisions for cross empowerment between CGST and
SGST/UTGST officers to ensure that a proper officer under the CGST Act
is also treated as the proper officer under the SGST/UTGST Act and vice
versa. Thus, a proper officer can issue orders with respect to both, the
CGST as well as the SGST/UTGST laws.
GST law also provides that where a proper officer under one Act (say
CGST) has passed an order, any appeal/review/ revision/rectification
against the said order will lie only with the proper officers of that Act
(CGST Act). Accordingly, if any order is passed by the proper officer
under a SGST Act, any appeal/ review/ revision/ rectification against the
said order will lie only with the proper officer under that SGST Act. Thus,
Home Furnishers is required to file an appeal only with the Central Tax
Appellate Authority [Section 6 of CGST Act].
(3) Home Furnishers’ view is not correct in law. Section 107(6) provides
that no appeal shall be filed before the Appellate Authority, unless the
appellant has paid—
(b) a sum equal to 10% of the remaining amount of tax in dispute arising
from the impugned order subject to a maximum of ` 25 crore*.
*Equivalent amount is required to be deposited with respect to SGST liability.
Since in the given case, Home Furnishers disagrees with the entire tax
demanded, it has to make a pre-deposit of 10% of the amount of tax in
dispute arising from the impugned order, i.e., 10% of ` 50,00,000 which
is ` 5,00,000 (i.e. ` CGST 2,50,000 and SGST ` 2,50,000).
10. (1) The Board may, on the recommendations of the GST Council, issue
orders or instructions or directions fixing monetary limits for regulating
filing of appeal or application by the CGST officer.

(2) Non-filing of appeal/application by a CGST officer on account of such

monetary limits fixed by the Board shall not preclude such officer from
filing appeal or application in any other case involving the same or
similar issues or questions of law.
(3) No person, who is a party in application or appeal can contend that the
CGST Officer has acquiesced in the decision on the disputed issue by
not filing an appeal or application (on account of monetary limits).
(4) The Appellate Tribunal or Court hearing such appeal or application shall
have regard to circumstances for non-filing of appeal or application by
the CGST officer on account of monetary limits fixed by the Board.
11. Section 107(6) provides that no appeal shall be filed before Appellate
Authority, unless the appellant pays*:-
(a) in full, tax, interest, fine, fee and penalty arising from impugned order,
as is admitted by him; and
(b) 10% of remaining tax in dispute arising from the impugned order
subject to a maximum of ` 25 crore, in relation to which the appeal has
been filed.
*Equivalent amount is required to be deposited with respect to SGST liability.
Thus, in Case-I, XY Company has to make a pre-deposit of 10% of ` 6,00,000,
which is ` 60,000 (i.e. CGST ` 30,000 and SGST ` 30,000) assuming that XY
Company disagrees with the entire tax demanded.
However, when XY Company admits the liability of only ` 2,00,000 (CGST +
SGST) and disputes the balance tax demanded of ` 4,00,000, it has to make a
pre-deposit of:
(i) ` 2,00,000 + ` 20,000 [proportionate penalty on tax admitted] + interest
@ 18% p.a. payable on the tax admitted for the period of delay, and
(ii) 10% of ` 4,00,000 which is ` 40,000.
Examples/Illustrations/Questions and Answers, as the case may be, given in the
Chapter are based on the position of GST law existing as on 30.04.2021. Further,
it may be noted that the Appellate Tribunal has not been constituted so far and
thus, no appeals can be filed before it. This aspect needs to be borne in mind
while reading the examples and questions and answers relating to Appellate
Tribunal given in the Chapter.

AMENDMENTS MADE VIDE THE FINANCE (NO. 2)

ACT, 2019
The Finance (No. 2) Act, 2019 has come into force from 01.08.2019. However, the
amendments made in section 2(4) of the CGST Act vide the Finance (No. 2) Act, 2019
would become effective only from a date to be notified by the Central Government in
the Official Gazette. Such a notification has not been issued till 30.04.2021. Therefore,
the applicability or otherwise of such amendment for May 2022 and/or November 2022
examinations shall be announced by the ICAI only after such notification is issued by the
Central Government.
In the table given below, the existing provisions 3 of section 2(4) are compared with the
provisions as amended by the Finance (No. 2) Act, 2019.
Once the announcement for applicability of such amendments for examination(s) is
made by the ICAI, students should read the amended provisions given hereunder in
place of the related provisions discussed in the Chapter.
Existing provisions Provisions as amended by the Remarks

Finance (No. 2) Act, 2019
Section 2(4) Section 2(4) The definition

“adjudicating authority” “adjudicating authority” means of adjudicating
means any authority, any authority, appointed or authority
appointed or authorised to authorised to pass any order or proposed to be
pass any order or decision decision under this Act, but does amended to
under this Act, but does not not include the Central Board of exclude the
include the Central Board of Indirect Taxes and Customs, the proposed
Indirect Taxes and Customs, Revisional Authority, the National
the Revisional Authority, the Authority for Advance Ruling, the Appellate
Authority for Advance Ruling, Appellate Authority for Advance Authority for
the Appellate Authority for Ruling, National Appellate Advance Ruling
Advance Ruling, the Authority for Advance Ruling, from the
Appellate Authority, the the Appellate Authority, the purview of
Appellate Tribunal and the Appellate Tribunal and the adjudicating
Authority referred to in sub- Authority referred to in sub- authority.
section (2) of section 171; section (2) of section 171;
3
Provisions existing as on 30.04.2021

AMENDMENTS MADE VIDE THE FINANCE ACT, 2021

The Finance Act, 2021 has come into force from 28.03.2021. However, the
amendments made in the CGST Act and the IGST Act vide the Finance Act, 2021
would become effective only from a date to be notified by the Central Government
in the Official Gazette. Such a notification was not issued till 30.04.2021. Therefore,
the applicability or otherwise of such amendments for May 2022 and/or November
2022 examinations shall be informed by the ICAI by way of an announcement.
In the table given below, the existing provisions 4 of section 107(6) of the CGST Act,
2017 are compared with the provisions as amended by the Finance Act, 2021.
Once the announcement for applicability of such amendments for examination(s)
is made by the ICAI, students should read the amended provisions given hereunder
in place of the related provisions discussed in the Chapter.
Existing provisions Provisions as amended Remarks

by the Finance Act,
2021
Section 107 Section 107 A proviso to sub-

Sub-section (6) Sub-section (6) section (6) of section
107 of the CGST Act is
No appeal shall be filed No appeal shall be filed
being inserted to
under sub-section (1), under sub-section (1),
provide that no appeal
unless the appellant has unless the appellant has
shall be filed against an
paid— paid—
order made under sub-
(a) in full, such part of the(a) in full, such part of the section (3) of section
amount of tax, interest, fine,
amount of tax, interest, 129, unless a sum
fee and penalty arising from fine, fee and penalty equal to twenty-five
the impugned order, as is arising from the impugned per cent. of penalty has
admitted by him; and order, as is admitted by been paid by the
(b) a sum equal to ten per him; and appellant.
cent. of the remaining (b) a sum equal to ten per
amount of tax in dispute cent. of the remaining
arising from the said order, amount of tax in dispute
subject to a maximum of arising from the said order,
twenty-five crore rupees, in subject to a maximum of
4
Provisions existing as on 30.04.2021

relation to which the appeal twenty-five crore rupees,

has been filed. in relation to which the
appeal has been filed.
Provided that no appeal
shall be filed against an
order under sub-section
(3) of section 129, unless
a sum equal to twenty-
five per cent of the
penalty has been paid by
the appellant.

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© The Institute of Chartered Accountants of India

© The Institute of Chartered Accountants of India

HIERARCHY OF APPEALS AND REVISION

Chapter XVIII of CGST Act – Appeals and Revision

Order passed by an Order passed by an officer subordinate to a

APPELLATE AUTHORITY REVISIONAL AUTHORITY

Orders passed by the

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 Adjudicating authority means any authority, appointed or authorised to pass any

3. APPEALS TO APPELLATE AUTHORITY

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© The Institute of Chartered Accountants of India

(3) The appeal is filed and provisional acknowledgement

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© The Institute of Chartered Accountants of India

(6) The adjudicating authority passed the order on 23rd

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D. Appointment of Appellate Authority

If the decision/order against

If the decision/order against Any officer not

4. POWERS OF REVISIONAL AUTHORITY

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Summary of the provisions of section 107

APPEALS TO APPELLATE AUTHORITY [SECTION 107]

The Commissioner may direct any Any person aggrieved by any

The AA will give the appellant a chance to be heard.

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© The Institute of Chartered Accountants of India

© The Institute of Chartered Accountants of India

shall be excluded in computing the period of limitation of 3 years

✪ The provisions related to revision empower the superior

✪ Since AA also has the power to annual, enhance etc. (as

✪ Revision proceedings can only be taken once with respect to an order

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D. Officers authorized as Revisional Authority

For decisions/orders passed by

5. APPELLATE TRIBUNAL UNDER GST LAWS

A. Constitution and structure of Appellate Tribunal [Section 109]

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(iv) A diagrammatic representation of the composition of the Appellate

Goods And Services Tax Appellate

Technical Technical Technical

(v) The appointments to the Tribunal and functioning shall be in the

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(c) receiving evidence on affidavits;

6. APPEAL TO APPELLATE TRIBUNAL

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(ii) Time limit for filing appeal

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(iv) Such application shall be dealt with by the Appellate Tribunal as if it

• AA/RA/Original adjudicating authority

• Jurisdictional Commissioner or the SGST/UTGST Commissioner

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 No amendment which has the effect of enhancing an assessment or

Present status of the GST Appellate Tribunal

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laws generally mandate “pre-deposits” so as to discourage frivolous appeals and

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AA Admitted CGST liability in full + Admitted IGST liability in full +

Appellate Admitted CGST liability in full + Admitted IGST liability in full +

© The Institute of Chartered Accountants of India