REVISION OF ORDERS UNDER GST LAW – PART 2

Non-applicability of Revision Mechanism under Section 108

Since the provisions of section 108 of CGST Act, 2017 are subject to application of section 121 which provides for non-appealable decisions and orders, viz., the following orders:

1. an order of the Commissioner or other authority empowered to direct transfer of proceedings from one officer to another officer; or
2. an order pertaining to the seizure or retention of books of account, register and other documents; or
3. an order sanctioning prosecution under this Act; or
4. an order passed under section 80.

the revision cannot be resorted to. It may further be noted that the power of revision cannot be exercised if:—

1. the order has been subject to an appeal before AA or Tribunal or High Court or Supreme Court; or
2. the period of six months (from the date of communication of order) has not yet expired or more than three years have expired after the passing of the decision or order sought to be revised; or
3. the order has already been taken for revision at an earlier stage; or
4. the order sought to be revised is a revisional order in the first place.

However, the Revisional Authority may pass an order on any point which has not been raised and decided in an appeal before AA/Tribunal/HC/SC, 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 from the date of initial order, whichever is later.

Quasi-judicial proceedings

Power of revision under section 108 are quasi-judicial and hence principles of natural justice have to be followed and personal hearing is a must. Revisionary orders are not binding on Appellate Tribunal, as it is a quasi-judicial authority.

Issue of show cause notice to initiate revision proceedings under Section 108 is not a pre-requisite but keeping in view the provision of Rule 109B and following the principles of natural justice, the revision authority put the taxpayer or notice before proceeding with the revision. This requirement of notice is mandatory where the taxpayer is likely to be adversely effected.

No revision if already appealed

The powers of Revisional Authority shall not be exercised if an appeal is already filed against the order to any one of the following:

• Appellate Authority under section 107
• Appellate Tribunal under section 112
• High Court under section 117
• Supreme Court under section 118

The revision can also not be done if:

• period of 6 months as specified in section 107(2) has not expired or more than 3 years have expired after passing the decision or order
• the order has already been taken under this section for revision at any earlier stage
• revisionary order has already been passed once.

If a revision is sought under section 108 of CGST Act, 2017, the Revisional Authority shall pass the order within one year from the date of order passed in such appeal or within 3 years from the date of such passing the decision or order sought to be revised, whichever is later.

Consequences of Revision

On exercise of revisionary powers, the Revisional Authority may after observing principles of natural justice by giving an opportunity of being heard to the assessee may take any of the following decisions as deemed fit:

1. Stay the order under review
2. Enhancing the demand
3. Modifying the order
4. Annulling the order

Time Limit for revision order

If a revision is sought under section 108 of CGST Act, 2017, the Revisional Authority shall pass the order within one year from the date of order passed in such appeal or within 3 years from the date of such passing the decision or order sought to be revised, whichever is later.\

Chief Commissioner / Commissioner can pass an order on any point which has not been raised in any appeal. Such order must be passed 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  as per section 108(2), whichever is later. If the order is stayed by the order of a Court or Tribunal, the period of the stay will be excluded.

Practice Notes

The taxpayer is expected to undertake the following:

• Receive and understand the contents and underlying reasons of proposed revision.
• Ascertain the authenticity and authority of the notice / revisional authority
• Proper officer cannot be the Revisional Authority
• Draft proper and legal reply to the notice along with supporting documents such as agreement, records, financial statements, details of transactions and other necessary verifiable evidences.
• Attend to personal hearing opportunity provided by the Revisional Authority (RA)
• On receipt of order, either to comply with the same or initiate appellate action before relevant Appellate Authority i.e., Appellate Tribunal.