Tax, Accounting, and Finance Chronicle

When navigating the labyrinthine process of GST appeals, it’s crucial to understand the various levels and their respective protocols. For any individual or entity aggrieved by a decision rendered by an adjudicating authority, there exists a structured pathway to seek redress. The appeal process begins with the Appellate Authority, moving up through successive levels if necessary. Each step in this journey is guided by specific provisions under the GST law, ensuring a comprehensive framework for resolving disputes.

Initiating the Appeal Process

The right to appeal is reserved for the person aggrieved by an adjudicating authority’s decision or order. This appeal must directly challenge an appealable order issued under the GST Act. The initial step involves approaching the Appellate Authority, where one can contest decisions made by the adjudicating authority. For higher appeals, the matter can be escalated to the Appellate Tribunal, specifically the Goods and Services Tax Appellate Tribunal (GSTAT). Here, any person dissatisfied with the Appellate Authority’s decision or a revisional order can seek further redress.

Formation and Functioning of GST Appellate Tribunals

The constitution of GST Appellate Tribunals is underway, with recommendations from the GST Council. The number and location of these tribunal benches have been delineated nationwide, and the eligibility criteria for the appointment of the President and Members of the GSTAT have been established. It is anticipated that these tribunals will commence operations shortly, providing an additional layer of adjudication.

Escalating Appeals to Higher Courts

If either the department or the assessee is dissatisfied with a tribunal’s decision, they may escalate the matter to the High Court. The High Court will admit such appeals if they involve substantial legal questions. It’s noteworthy that the tribunal serves as the final authority on matters of fact. Appeals to the Supreme Court from the High Court are permissible when the High Court certifies a case as fit for appeal based on an aggrieved party’s request.

Scope of Appeal

An appeal under GST is a statutory right, providing taxpayers (aggrieved persons) a remedy under the law. Other remedies include revision under Section 108 and rectification under Section 161. While the term “appeal” is not explicitly defined in GST law, it generally implies an application to a higher authority for reversing or modifying an impugned order. Not all orders are appealable, as stipulated in Section 121. The objective of an appeal is to resolve tax disputes, either by confirming, modifying, or quashing the impugned order.

Stages of Appeals under GST

First Level—

An aggrieved person must first file an appeal with the First Appellate Authority against an order passed by the adjudicating authority under Section 107 of the CGST Act, 2017. The relevant adjudicating authority may be a Commissioner (Appeals) if the original decision was made by an Additional or Joint Commissioner, or an Additional Commissioner (Appeals) if made by a Deputy or Assistant Commissioner or Superintendent.

Second Level—

Appeals from the First Appellate Authority go to the Appellate Tribunal, covered under Sections 111-113.

Third Level—

From the Appellate Tribunal, appeals can be taken to the High Court as per Section 117, provided there is a substantial question of law involved.

Fourth Level—

Finally, decisions of the High Court can be appealed to the Supreme Court under Section 118, subject to certification by the High Court.

Key Considerations for Filing Appeal to the Appellate Authority

• Eligibility: Any aggrieved person or the department on the Commissioner’s direction can file an appeal.
• Order Appealed Against: Decisions or orders passed by an adjudicating authority under the Act.
• Time Limit: Appeals must be filed within three months from the order’s communication date, with a possible one-month extension. Departmental appeals have a six-month limit.
• Pre-Deposit: A 10% pre-deposit of the disputed amount is required.
• Adjournments: Up to three adjournments may be granted, with reasons recorded in writing.
• Decision Timeline: Appeals should ideally be resolved within one year of filing.
• Remand: Remand to the adjudicating authority is not permitted.

Appeal to the Appellate Tribunal

• Eligibility: Aggrieved individuals or authorized departmental officers on the Commissioner’s direction.
• Order Appealed Against: Orders issued by the appellate authority.
• Time Limit: Appeals must be filed within three months, extendable by three more months for sufficient cause; departmental appeals have a six-month limit.
• Pre-Deposit: A 20% pre-deposit of the disputed amount is required.
• Adjournments: Up to three adjournments may be granted.
• Decision Timeline: Appeals should ideally be resolved within one year of filing.

Appeals to Higher Courts:

• Eligibility: Any aggrieved person.
• Order Appealed Against: Appellate tribunal orders involving substantial legal questions.
• Time Limit: Appeals must be filed within 180 days of the order’s communication, with provisions for delayed filings if justified.

Supreme Court

• Eligibility: As per the Supreme Court Rules and Code of Civil Procedure.
• Order Appealed Against: High Court orders or national/regional tribunal bench orders involving inter-state or state-centre disputes regarding the nature or place of supply.
• Time Limit: As per the Supreme Court Rules and Code of Civil Procedure.

Understanding and navigating these intricate processes is pivotal for any aggrieved party seeking justice under the GST framework. Each stage offers a systematic approach to resolving disputes, ensuring that the principles of fairness and legal propriety are upheld throughout the appeal process.

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