Can 1st Appellate Authority go beyond the grounds mentioned in Order of Adjudicating Authority

[Sayali Jawle]

Refund ( ITC on Export of service) rejection order passed by jurisdictional officer mentioned only one ground with respect to 'distinct person ' which is now squarely settled by Circular No. 161/17/2021-GST dated 20th September 2021.

During the course of appeal hearing , 1st Appellate Authority raised observation related to additional ground of intermediary services. Can Appellate Authority go beyond the grounds mentioned in refund rejection order ?

Note : The show cause notice issued by Jurisdictional officer had asked explanation on intermediary service to which due reply was submitted and Order only covered single ground - SP and SR are distinct person and thus not export.

[KASTURI SETHI]

Q. Can Appellate Authority go beyond the grounds mentioned in refund rejection order ?

Answer is YES as the Appellate Authority has not gone beyond the ambit of SCN. The issue of 'intermediary' was taken up in the SCN but was not discussed by the Adjudicating authority in Order-in-Original. The Appellate Authority has taken up this very issue in OIA de jure.

Moreover, there is no restriction on accepting additional grounds at appellate stage.

AI Summary

Appellate authority may consider grounds raised in the show cause notice even if omitted from the adjudication order. An appellate authority may examine and decide issues that were raised in the show cause notice even if the adjudicating authority did not address them in its Order-in-Original; there is no absolute bar on accepting additional grounds at the appellate stage provided they fall within the ambit of matters raised in the earlier proceedings.