Can the appellate authority increase tax liability beyond the disputed amount

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....an the appellate authority increase tax liability beyond the disputed amount<br> Query (Issue) Started By: - vaibhav agrawal Dated:- 18-9-2025 Last Reply Date:- 19-9-2025 Goods and Services Tax - GST<br>Got 4 Replies<br>GST<br>An appeal has been filed by the department under section 107(2) of the CGST Act. In Form APL-03, the disputed amount was mentioned as INR 1,68,073, but in the order issued b....

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....y the appellate authority, the total tax liability has been finalized at INR 2,83,866. The OIO covers the tax periods for FY 2017-18 and FY 2019-20, wherein the tax liability of INR 1,68,073 pertains to FY 2017-18 and INR 1,60,326 pertains to FY 2019-20. The assessing officer had earlier withdrawn the liability and issued a nil order. This was challenged by the department, and an appeal was filed....

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..... In the appeal application, only the tax pertaining to FY 2017-18 was shown as the disputed amount, but the appellate order has included both FY 2017-18 and FY 2019-20. My query is: Can the amount under dispute in the appeal application be less than the amount determined in the appellate authority's order, in cases where the appeal has been filed under section 107(2) of the CGST Act? Reply By ....

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....KASTURI SETHI: The Reply: As per Section 107 (11) of CGST Act, the Appellate Authority can modify or annul or confirm the Order-in-Original. Emphasis is on the terms, "Modify" and "as it thinks just and proper". As per legal dictionary based on the Supreme Court judgement, the word, "modify" inter alia, includes enhancement also. As per second proviso to Section 107 (11), the Appellate Authorit....

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....y is required to issue the SCN to the party for increase in tax demanded/confirmed in the Order-in-Original within prescribed time limit under Section 73 or 74 or 74A whichever is applicable. Reply By Sadanand Bulbule: The Reply: Perfect clarification Sirji. Appellate Authority is co-extended assessing/adjudicating authority as well. Law is settled. Reply By vaibhav agrawal: The Reply: Thanks....

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.... Kasturi Sir and Sadanand Sir for your well-explained response to my query. It has been very helpful. Reply By KASTURI SETHI: The Reply: &nbsp;Sh.Sadanand&nbsp; Bulbule Ji, Sir, I am highly thankful to you for your validation of my reply and also for adding finishing touch.&nbsp;<br> Discussion Forum - Knowledge Sharing ....