TaxTMI 
TaxTMI 
Non-serious taxpayers should not file appeal before GSTAT.
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....on-serious taxpayers should not file appeal before GSTAT.<br>By: - K Balasubramanian<br>Goods and Services Tax - GST<br>Dated:- 28-9-2026<br>At the outset, good time has really started for the taxpayers of GST due to recent functioning of the GSTAT. As I start this write up on 26/09/2026 around noon, a total of 84,348 appeals have been filed and 8,357 appeals have been admitted for further conside....
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....ration through hearing. Out of 8,357, 203 appeals have been disposed so far. Though this sample size is too small to predict the rate of success of the taxpayer, the trend is predictable. Most of the orders are in favour of the taxpayers and few appeals of revenue were rejected based on quantum of dispute. Taxpayers, whose disputed amount in an appeal before the GSTAT does not exceed Rs. 50,000/ a....
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....re suggested not to prefer the second appeal as there are chances of being rejected are higher. In case issue is recurring in nature and strong on legal grounds supported by Supreme Court or Jurisdictional High court rulings, the appeal may be preferred as an exception. The trigger for this write up is the decision of the division bench of GSTAT, Chandigarh on 16/09/2026 as reported in ma....
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....tter of T.S. Namdhari Tailors Muktsar Wale Versus Harsimrat Kaur, Joint Commissioner, Ropar & Ors. - 2026 (9) TMI 1736 - GSTAT CHANDIGARH. The taxpayer was informed about the five defects in the appeal by the Registrar. In addition, before deciding the case, three hearings were posted by Registrar which were not attended by the taxpayer. The division bench posted the matter three times again ....
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....and in the fifth hearing, it was mentioned as "3. When the matter was listed on 26.08.2026, this bench noted that it appeared that the Appellant was not interested or serious in pursuing the appeal. In the interest of justice, a final opportunity was given to the Appellant to remove the defects, and the matter was ordered to be listed on 16.09.2026 "for admission (with defects)." In the daily orde....
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....r dated 26.08.2026, it was made clear that if the Appellant does not rectify the defects before 16.09.2026, or does not appear on this date, this bench may at its discretion reject the appeal". The division bench has done full justice to the taxpayer and even the last opportunity was not taken seriously by the taxpayer, the bench passed orders as "4. As noted above, six opportunities of hearing....
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.... (three before this bench and three before the Hon'ble Registrar) for clearing the defects have already been afforded to the Appellant. No one appeared for the Appellant on any of these dates, and no adjournments were sought. Further, no additional documents have been uploaded by the Appellant for rectifying any of the defects raised in the aforesaid defect notice dated 06.07.2026. Hence, more....
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.... than sufficient opportunity has been given to the Appellant, to cure the defects. It is clear that the Appellant is not interested or serious in pursuing the appeal. 5. Accordingly, exercising the discretion under Rule 24(4) of the GSTAT (Procedure) Rules, 2025, the appeal is rejected". Key take aways. • The bench is neutral in all aspects and reasonable opportunity was granted to....
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.... the taxpayer. • The defects were not some inadvertent errors but grave. Nevertheless, repeated offers were made to correct the defects. • The defects are : (i) Copy of Vakalatnama uploaded is not legible/readable; (ii) The appeal/application and/or supporting documents are not digitally signed; (iii) The copy of the Show Cause Notice enclosed with the appeal is not duly ....
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....signed/certified and is not legible; (iv) Copy of the Order-in-Original has not been enclosed/uploaded with the appeal; (v) The copy of the impugned Order-in-Appeal uploaded with the appeal does not contain the order number/ reference number and date. • It was the last chance for the taxpayer to get relief which the taxpayer has rejected himself. Conclusion: The GSTAT is not simply....
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.... posting the defects in the portal. The defect is also informed to the petitioner through SMS. Seven working days are given to correct the defect online. By viewing the status of the case on a weekly basis, it would be absolutely possible to monitor as to whether there are any defects or the appeal is admitted for further processing. Almost 80% of the taxpayers get necessary relief at the GSTAT le....
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....vel and this opportunity is available after a long gap of nine years only from February 2026. More than 150 taxpayers have already got the required relief. The last date for all appeals against OIA dated up to 30/04/2026 lapsed on 31/07/2026 itself for the taxpayers. But, still it is possible to seek condonation of delay with proper justifications only up to 31/10/2026, after which GSTAT shall not....
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.... be entertaining the legacy cases. In a like manner, orders passed post 01/05/2026 also have only three months for filing (from date of OIA ) the second appeal with discretionary powers vested with the benches of GSTAT to condone the reasonable delay only based on proper justifications. Hence, all taxpayers who loose their case at adjudication level are encouraged to prefer the first appeal imm....
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....ediately. Those who have OIA with them as on date, where they are strong on legal ground based on the recent GSTAT decisions are also encouraged to prefer the second appeal well in time. For those who approach the GSTAT for the first time, it is suggested to follow the required procedures as per GSTAT procedure rules and be assured that the chances of an appeal being rejected even before admiss....
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....ion is extremely low. This is evident from the above referred case where six opportunities were granted to the taxpayer by the GSTAT. =============<br> Scholarly articles for knowledge sharing by authors, experts, professionals ....