REVISION OF ORDERS UNDER GST LAW – PART 1

The review mechanism for orders passed under the GST laws provide for revision for orders which are appealable. The statutory provisions of revision of orders are provided in CGST Act, 2017 as follows:

The GST Act provides for the mechanism of revision, by the Revisional Authority, of the orders passed by his subordinate officers. If the Revisional Authority on examination of the case records is of the view that the decision or order passed 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 or has not taken into account material facts, 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. It may be noted that ‘decisions’ shall include intimation given by any officer lower in rank than the Revisional Authority.

It may further be noted that all the orders or decisions are not subject to revision mechanism. The revision shall not be applicable to all non-appealable orders and decisions which cannot be revised. The non-appealable orders are dealt with in section 121 of CGST Act, 2017 and section 108 is subject to the provisions of section 121 of CGST Act, 2017.

Under section 108 of CGST Act, 2017, the Commissioner has been given revisionary powers. He can stay the operation of the order for such period as he deems fit and also make further inquiry for passing a revised order.

The Commissioner may on his own motion or upon information received by him, call for and examine the record of any proceeding under this Act, and if he considers that any decision or order passed under this Act by any officer subordinate to him is erroneous in so far as it is prejudicial to the interest of the revenue, 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.

‘Record’ shall include all records relating to any proceedings under this Act available at the time of examination by the commissioner.

It may be noted that ‘decision’ shall include intimation given by any officer who is sub-ordinate to commissioner or lower in rank than the Revisional Authority which implies that review by commissioner could be of any show cause notice or any other communication.

In terms of section 108(2) of the CGST Act, 2017, the Commissioner shall not exercise any power under sub-section (1), if—

1. the order has been subject to an appeal under section 112 or under section 107 or under section 117 or under section 118; or
2. more than three years have expired after the passing of the decision or order sought to be revised.

Where the issuance of an order under sub-section (1) is stayed by the order of a court or tribunal, the period of such stay shall be excluded in computing the period of three years.

Appeal could be before Appellate Authority, Tribunal, High Court or Supreme Court. It would therefore, be desirable to file appeal at an early date if revision is feared by the tax payer.

Further, it may be noted that as per proviso to section 108(2), if any point is not covered in appeal, commissioner can exercise power of revision in respect of such points or issues. However, this can be done within the following time frame—

within one year from the date of order in appeal, or

within 3 years from passing of the decision/order sought to be revised, whichever is later.

Revisional Authority or Revisional Powers of Commissioner

• The Revisional Authority can, on his own, or on request from the Commissioner of State Tax or UT Tax, examine the records of any proceeding. He will examine the records if he considers that any decision by any subordinate officer is-
  • Prejudicial to the interest of the revenue, or
  • Illegal, or
  • Improper, or
  • Not taking into account certain material facts(whether or not available at the time of issuance of the order), or
  • An observation was made by the CAG
• If he thinks it necessary, he can stay the order for a time period as he deems fit.
• Person concerned to be given an opportunity of being heard.
• Chief Commissioner / Commissioner can enhance or modify or annul the order.

Nature of Revision Order

As per section 108(3) of the CGST Act, 2017, appeal against order or revision by the Commissioner is subject to appeal provisions under section 113, 117 or 118 of the CGST Act, 2017, i.e. before Appellate Tribunal, High Court and Supreme Court.

Thus, every order passed under section 108(1), shall be final and binding on the parties but subject to appeal before higher forums

Thus, if an appeal is preferred against the revision order, it may be done before the following authorities:

1. Appellate Tribunal (section 113)
2. High Court (Section 117)
3. Supreme Court (Section 118)

If no appeal as aforesaid is preferred, order passed under section 108(1) of CGST Act, 2017 shall be considered as final and binding on the concerned parties.

(To be continued….)

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