Appeal for part dispute of order

[vishwanath shetty]

Order for SCN was passed for 6 different issue. from this for 2 issue liability payment was already made before order but same not consider in order and liability was raised. further, for 1 issue taxpayer agreed and made payment. Payment was made via DRC-03. Now While filing Appeal for balance issues. in the tab liability to pay, the admitted liability is also shown to pay by cash.

What to do? . Should I file DRC-3A first and then file the appeal? will it reduce the liability?

Please guide.

[Sadanand Bulbule]

You may file an application of rectification of error under Section 161, if the stated facts are on record.

[Ryan Vaz]

Yes - in your case, filing DRC-03A first is strongly advisable before filing appeal.

Since payments were already made through DRC-03:

• but not considered/adjusted in the adjudication order,
  the GST portal is still treating those amounts as unpaid demand.

Filing DRC-03A generally helps:

• link earlier DRC-03 payments with the adjudication order,
• reduce outstanding liability,
• and correctly reflect admitted payment while filing appeal.

Otherwise, the portal may incorrectly require:

• duplicate cash payment,
• or higher pre-deposit computation

[Saurabh Goel]

@vishwanath, is the DRC-05 already issued post making payment via DRC-03?

[Kashish Gupta]

1. we understand that in present case, you have admitted liability qua 3 (2+1) issues wherein payment for 2 issues was made before issuance of Order-in-Original and for 1 issue, payment was made after issuance of such order.

2. In this case, you can file form GST DRC-03A qua all 3 issues and knock off confirmed demand qua 3 issues (presuming that payment for 3rd issue has not been made from Electronic Liability Register). Once the payments confirmed qua 3 issues are knocked off, you may proceed to file appeal by declaring admitted tax as well as disputed tax.

3. If your issue does not resolve, then, the most advisable course of action would be to first file a Rectification Application under Section 161 of the CGST Act before the adjudicating authority. A rectification application under the CGST Act is maintainable only in cases involving an "error apparent on the face of the record" within the meaning of Section 161. Accordingly, while drafting the application, it must be strongly stressed that the relied-upon documents and payment challans were either already submitted along with the reply to the SCN/ or furnished during the course of Personal Hearing/ or otherwise available on the taxpayer's GSTN portal, which is accessible to the adjudicating authority.

[KALLESHAMURTHY MURTHY K.N.]

Sir,

Better to apply for rectification as suggested at Sl. No. (1) by Sri Sadananda Bulbule Sir, before appeal.

AI Summary

GST appeal payment adjustment: DRC-03A or rectification may help reflect prior payments and avoid duplicate cash liability. In a GST appeal against an adjudication order covering multiple issues, prior payments made before the order were not reflected in the demand, and one admitted issue had already been paid through DRC-03. The portal continued to show the admitted liability as payable in cash, creating a risk of duplicate payment or an inflated pre-deposit calculation. It was advised that a rectification application under Section 161 may be filed where the facts are on record, and that filing DRC-03A before the appeal is generally preferable to link earlier payments and reduce the outstanding liability shown on the portal.