GST APPEALS TO APPELLATE AUTHORITY – WHAT & HOW ?

Appeal to Appellate Authority

An appeal under any law is an application to a higher court or Authority for a reversal or modification of the decision of a lower court or Authority. Appeals arise when there are any legal disputes.

1. Who can file appeal – Any person aggrieved or Department on direction of commissioner
2. Order appealed against – Any decision or order passed by an adjudicating authority under the Act
3. Adjournments – A maximum of three adjournments may be allowed.
4. Time limit to file appeal – 3 months from date of communication of order; delay of upto 1 month condonable; 6 months in case of Departmental Appeal
5. Pre-deposit for filing of appeal – 10% of amount in dispute; 25% in case of penalty under section 129(3) of CGST Act, 2017 (upto Finance Act, 2025; 10% for appeal against penalty amount (w.e.f. Finance Act, 2025)
6. Number of adjournments allowed in hearing – Upto 3 adjournments can be granted for hearing the appeal after recording reasons in writing
7. Time limit to decide appeal –Appeal may be decided within a period of one year from the date of filing.
8. Remand allowed – No remand to adjudicating authority is allowed.

A person who is aggrieved by a decision or order passed against him by an adjudicating authority, can file an appeal to the Appellate Authority (AA, for short). 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. It is to be noted 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 installments).

The time limit for the party to file an appeal before the Appellate Authority is 3 months from the date of communication of the impugned order. But the Appellate Authority may condone a delay of up to one month, if he is satisfied that there was sufficient cause for such delay.

Section 107 of the CGST Act, 2017, provides provisions for preferring an appeal against the order of the Adjudicating Authority to the Appellate Authority. Section 2(4) of the CGST Act, 2017 defines adjudicating authority to mean any authority, appointed or authorized to pass any order or decision under this Act. However, following are not covered under the ambit of adjudicating authority:

1. Central Board of Customs and Excise (Board)
2. Revisional Authority,
3. Authority for Advance Ruling,
4.  Appellate Authority for Advance Ruling,
5. The Appellate Authority
6. Appellate Tribunal

Hence, an order passed by any officer other than the revisionary authority as well as other authorities mentioned above could be contested before the Appellate Authority.

However, in certain cases, as stipulated in Section 120 of the CGST Act, 2017, Appeals cannot be made for the following decisions taken by a GST officer:

• An order to transfer the proceedings from one officer to another officer
• An order to seize or retain books of account and other documents; or
• An order sanctioning prosecution under the Act; or
• An order allowing payment of tax and other amount in installments.

Who can file Appeal

• Any person aggrieved by any decision or order passed against him under the Act by an adjudicating authority, may appeal to the prescribed appellate authority.
• Thus, an appeal can be:

1. filed by any aggrieved person,
2. against any decision or order passed against him,
3. filed before appellate authority, and
4. preferred against an order passed by an adjudicating authority.
5. also be filed by the Department as per authorisation by the Commissioner.

How to choose a Consultant for handling GST disputes

• GST disputes arising out of any issue may result in filing of appeal before appellate authority including Tribunal and Courts.
• Taxpayers deciding to file the appeal may do so directly on their own or through a professional/consultant.
• Appellate provisions and procedures are highly technical in nature and require a specific skill set and mind set.
• For handling disputes and appeals, taxpayers should select the professional/ consultant keeping in mind the following:

• Interpretative skills
• Good legal drafting
• Presentations skills
• Updated and special knowledge of GST law
• Experience in handling appellate matters before authorities
• Sharp argumentative skills
• Integrity and ethics
• Proven track record and reputation at bar and bench
• Delivery of service

Time limit for filing appeal [Section 107(1), (2)]

Every appeal to appellate authority shall be filed within three months from the date on which the decision or order sought to be appealed against is communicated to the person preferring the appeal. The period of three months shall be reckoned from date of communication of order and not from the date of issuance or dispatch of order.

In case of an appeal filed by the Department on the basis of the directions by the Commissioner shall have to be filed within 6 months from date of communication of the decision or order.

It may be noted that CBIC had notified an Amnesty Scheme for belated filing of the appeals under Section 107 of the CGST Act, 2017. Accordingly, those taxable persons who could not file appeal under Section 107 against the orders issued upto 31.03.2023 were allowed to file appeal on or before 31.01.2024.