Ch 32 - First Appeal and Revision in GST | GST Saral by CA Dhruv Aggarwal PDF Download

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about:blank 1/8 
CA DHRUV AGRAWAL – National Chairman Taxation Committee-All India Confederation of Small & Micro Industries Association  
 
 
 
 
 
 
 
 
 
 
 
 
CHAPTER 32 - Fi rst Appeal and revi si on i n GST 
 
 
 
 
 
CHAPTER 32 
 
First Appeal and revision in GST 
 
32.1 Appeal against  adjudication order 
 
CGST makes provisions in respect of appeals against orders passed by adjudicating authority. 
 
The CGST Act makes provisions  of first appeal before  'Appe late Authority'  and second  appeal before 
'National Goods and Service Tax Appe late Tribunal' (Appe late Tribunal). 
 
Appe late Authority will be departmental officer. Pre-deposit of 10% tax is required to be made before f iling 
appeal before Appe late Authority. 
The Appe late Tribunal will be common for CGST, IGST, UGST and SGST. The Appe late Tribunal will have 
Member (Judicial), Member (Centre) and Member (State). Thus, Appe late Tribunal will have a three member 
bench. 
However, President and State President can entrust matters to division bench consisting of two members. 
Sma l matters upto Rs 5 lakhs can be decided by si ngle member bench of Appe late Tribunal. 
There is provision of mandatory pre-deposit for f iling appeal. For first appeal, it is equal to 10% of disputed 
liability of tax. 
For appeal before Appe late Tribunal, further 20% of disputed tax liability is payable. 
 
Appeal against order of Appe late Tribunal can be before High Court only if substantial question of law is 
involved. 
If the matter involves interpretation of 'place of supply', appeal lies before Supreme Court and not before High 
Court. 
 
Jurisdiction of Civil Court  Barred  - Save as provided in sections 117 and 118, no civil court shall have 
jurisdiction to deal with or decide any question arising from or relating to anything done or purported to be 
done under this Act - section 162 of CGST Act. 
Section 117 of CGST Act makes provision for appeal to High Court. Section 118 of CGST Act makes 
provision for appeal to Supreme Court. Excluding that, civil court has no jurisdiction in GST matters. 
Thus, appeal cannot be f iled in civil court. 
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about:blank 1/8 
CA DHRUV AGRAWAL – National Chairman Taxation Committee-All India Confederation of Small & Micro Industries Association  
 
 
 
 
 
 
 
 
 
 
 
 
CHAPTER 32 - Fi rst Appeal and revi si on i n GST 
 
 
 
 
 
CHAPTER 32 
 
First Appeal and revision in GST 
 
32.1 Appeal against  adjudication order 
 
CGST makes provisions in respect of appeals against orders passed by adjudicating authority. 
 
The CGST Act makes provisions  of first appeal before  'Appe late Authority'  and second  appeal before 
'National Goods and Service Tax Appe late Tribunal' (Appe late Tribunal). 
 
Appe late Authority will be departmental officer. Pre-deposit of 10% tax is required to be made before f iling 
appeal before Appe late Authority. 
The Appe late Tribunal will be common for CGST, IGST, UGST and SGST. The Appe late Tribunal will have 
Member (Judicial), Member (Centre) and Member (State). Thus, Appe late Tribunal will have a three member 
bench. 
However, President and State President can entrust matters to division bench consisting of two members. 
Sma l matters upto Rs 5 lakhs can be decided by si ngle member bench of Appe late Tribunal. 
There is provision of mandatory pre-deposit for f iling appeal. For first appeal, it is equal to 10% of disputed 
liability of tax. 
For appeal before Appe late Tribunal, further 20% of disputed tax liability is payable. 
 
Appeal against order of Appe late Tribunal can be before High Court only if substantial question of law is 
involved. 
If the matter involves interpretation of 'place of supply', appeal lies before Supreme Court and not before High 
Court. 
 
Jurisdiction of Civil Court  Barred  - Save as provided in sections 117 and 118, no civil court shall have 
jurisdiction to deal with or decide any question arising from or relating to anything done or purported to be 
done under this Act - section 162 of CGST Act. 
Section 117 of CGST Act makes provision for appeal to High Court. Section 118 of CGST Act makes 
provision for appeal to Supreme Court. Excluding that, civil court has no jurisdiction in GST matters. 
Thus, appeal cannot be f iled in civil court. 
CA DHRUV AGRAWAL – National Chairman Taxation Committee-All India Confederation of Small & Micro Industries Association  
 
 
APPEAL PROVISIONS  IN GST 
 
 
 
 
Adjudicating  Authority 
 
 
 
 
1                                                1 
 
Appellate Authority-                                                                      Rcvisional  Authority  011 his 
Appeal within  three  months                                                                   own wil hin three  years 
Section   107                                                                                         Section   108 
 
 
 
 
 
 
 
 
 
 
 
 
 
r 
 
National  Bench/Regional                                                                 State  Bench/  Area Bench  . If 
Bench-   If one of issue relates                                                               Issue  relating  to place of 
10  place of supply                                                                       supply  not involved Appeal 
Appeal within  three  months                                                                   within  three  months- 
Section   109(5)                                                                                    Section   109(7) 
 
 
 
 
 
 
 
 
 
 
 
 
1                                                
1 
High Court  on
 
Supreme   Coun   . 
Section   118 or SlP 
If High Court  certifies  to 
be fi1 case  For appeal 
before  Supreme  CoUJ1 
substantial   question 
of law-  Section  117 
 
 
 
 
32.1-1 Department cannot  file appeal  if amount is below specified monetary limit 
Page 3


about:blank 1/8 
CA DHRUV AGRAWAL – National Chairman Taxation Committee-All India Confederation of Small & Micro Industries Association  
 
 
 
 
 
 
 
 
 
 
 
 
CHAPTER 32 - Fi rst Appeal and revi si on i n GST 
 
 
 
 
 
CHAPTER 32 
 
First Appeal and revision in GST 
 
32.1 Appeal against  adjudication order 
 
CGST makes provisions in respect of appeals against orders passed by adjudicating authority. 
 
The CGST Act makes provisions  of first appeal before  'Appe late Authority'  and second  appeal before 
'National Goods and Service Tax Appe late Tribunal' (Appe late Tribunal). 
 
Appe late Authority will be departmental officer. Pre-deposit of 10% tax is required to be made before f iling 
appeal before Appe late Authority. 
The Appe late Tribunal will be common for CGST, IGST, UGST and SGST. The Appe late Tribunal will have 
Member (Judicial), Member (Centre) and Member (State). Thus, Appe late Tribunal will have a three member 
bench. 
However, President and State President can entrust matters to division bench consisting of two members. 
Sma l matters upto Rs 5 lakhs can be decided by si ngle member bench of Appe late Tribunal. 
There is provision of mandatory pre-deposit for f iling appeal. For first appeal, it is equal to 10% of disputed 
liability of tax. 
For appeal before Appe late Tribunal, further 20% of disputed tax liability is payable. 
 
Appeal against order of Appe late Tribunal can be before High Court only if substantial question of law is 
involved. 
If the matter involves interpretation of 'place of supply', appeal lies before Supreme Court and not before High 
Court. 
 
Jurisdiction of Civil Court  Barred  - Save as provided in sections 117 and 118, no civil court shall have 
jurisdiction to deal with or decide any question arising from or relating to anything done or purported to be 
done under this Act - section 162 of CGST Act. 
Section 117 of CGST Act makes provision for appeal to High Court. Section 118 of CGST Act makes 
provision for appeal to Supreme Court. Excluding that, civil court has no jurisdiction in GST matters. 
Thus, appeal cannot be f iled in civil court. 
CA DHRUV AGRAWAL – National Chairman Taxation Committee-All India Confederation of Small & Micro Industries Association  
 
 
APPEAL PROVISIONS  IN GST 
 
 
 
 
Adjudicating  Authority 
 
 
 
 
1                                                1 
 
Appellate Authority-                                                                      Rcvisional  Authority  011 his 
Appeal within  three  months                                                                   own wil hin three  years 
Section   107                                                                                         Section   108 
 
 
 
 
 
 
 
 
 
 
 
 
 
r 
 
National  Bench/Regional                                                                 State  Bench/  Area Bench  . If 
Bench-   If one of issue relates                                                               Issue  relating  to place of 
10  place of supply                                                                       supply  not involved Appeal 
Appeal within  three  months                                                                   within  three  months- 
Section   109(5)                                                                                    Section   109(7) 
 
 
 
 
 
 
 
 
 
 
 
 
1                                                
1 
High Court  on
 
Supreme   Coun   . 
Section   118 or SlP 
If High Court  certifies  to 
be fi1 case  For appeal 
before  Supreme  CoUJ1 
substantial   question 
of law-  Section  117 
 
 
 
 
32.1-1 Department cannot  file appeal  if amount is below specified monetary limit 
CA DHRUV AGRAWAL – National Chairman Taxation Committee-All India Confederation of Small & Micro Industries Association  
 
 
National Litigation Policy formulated by Government of India aims to reduce Government litigation. The Policy 
lays down fo lowing policy in respect of revenue matters - (a) Appeals should not be f iled where revenue 
i nvolvement is not high (b) Appeals should not be f iled if the matter is covered by a series of judgments of the 
Tribunal and High Courts which have held the field and have not been cha lenged before Supreme Court (c) 
No appeal shall be f iled when the assessee has acted in accordance with the long standing practice and also 
merely because of change of opinion on the part of the jurisdictional officers. 
Corresponding provisions have been made in GST law. 
 
The Board(CBEC)  may, on the recommendation of the GST Council, from time to time, issue orders or 
instructions or directions fixing such monetary limits, as it may deem fit, for the purposes of regulating the filing 
of appeal or application by the tax officer under the provisions of this Chapter - section 120(1) of CGST Act. 
It shall not preclude such GST officer from filing appeal or application in any other case involving the same or 
similar issues or questions of law. 
No person, being a party in appeal or application shall contend that the GST officer has acquiesced in the 
decision on the disputed issue by not filing an appeal or application. 
Thus, non-filing of appeal by department cannot be used as precedent. 
 
The Appe late Tribunal or court hearing such appeal or application shall have regard to the circumstances 
under which appeal or application was not f iled by the GST Officer in pursuance of the orders or instructions 
or directions - section 120(4) of CGST Act. 
32.1-2 Non Appealable decisions  and orders 
 
As per section 121 of CGST Act, no appeal shall lie against any decision taken or order passed by a GST 
officer if such decision taken or order passed relates to any one or more of the fo lowing matters — 
 
(a)   An order of the Commissioner  or other authority for transfer of proceeding from one officer to 
another officer; or 
(b)   An order pertaining to the seizure or retention of books of account, register and other documents; or 
(c)   An order sanctioning prosecution under the Act; or 
(d)   An order passed under section 80 [order granting or not granting instalments for payment of taxes]. 
These are overriding provisions. 
Of course writ jurisdiction of High Court and Supreme Court is not affected. 
 
32.1-3 Interest on delayed refund of pre-deposit 
 
Where an amount deposited  by the appe lant under section 107(6) or 112(8) is required to be refunded 
consequent to any order of the Appe late Authority or of the Appe late Tribunal, interest at the rate specified 
under section 56 shall be payable in respect of such refund from the date of payment of the amount ti l the date 
of refund of such amount - section 115 of CGST Act. 
32.1-4 Bar of jurisdiction of civil courts 
 
Save as provided by sections 117 and 118 (Appeal before High Court and Supreme Court), no civil court 
shall have jurisdiction to deal with or decide any question arising from or relating to anything done or purported 
to be done under this Act - section 162 of CGST Act. 
32.2 First Appeal before Appellate Authority 
 
Any person aggrieved by any decision or order passed against him under CGST Act or SGST Act or UTGST 
Act or IGST Act by an adjudicating authority, may appeal to such Appe late Authority as may be prescribed 
Page 4


about:blank 1/8 
CA DHRUV AGRAWAL – National Chairman Taxation Committee-All India Confederation of Small & Micro Industries Association  
 
 
 
 
 
 
 
 
 
 
 
 
CHAPTER 32 - Fi rst Appeal and revi si on i n GST 
 
 
 
 
 
CHAPTER 32 
 
First Appeal and revision in GST 
 
32.1 Appeal against  adjudication order 
 
CGST makes provisions in respect of appeals against orders passed by adjudicating authority. 
 
The CGST Act makes provisions  of first appeal before  'Appe late Authority'  and second  appeal before 
'National Goods and Service Tax Appe late Tribunal' (Appe late Tribunal). 
 
Appe late Authority will be departmental officer. Pre-deposit of 10% tax is required to be made before f iling 
appeal before Appe late Authority. 
The Appe late Tribunal will be common for CGST, IGST, UGST and SGST. The Appe late Tribunal will have 
Member (Judicial), Member (Centre) and Member (State). Thus, Appe late Tribunal will have a three member 
bench. 
However, President and State President can entrust matters to division bench consisting of two members. 
Sma l matters upto Rs 5 lakhs can be decided by si ngle member bench of Appe late Tribunal. 
There is provision of mandatory pre-deposit for f iling appeal. For first appeal, it is equal to 10% of disputed 
liability of tax. 
For appeal before Appe late Tribunal, further 20% of disputed tax liability is payable. 
 
Appeal against order of Appe late Tribunal can be before High Court only if substantial question of law is 
involved. 
If the matter involves interpretation of 'place of supply', appeal lies before Supreme Court and not before High 
Court. 
 
Jurisdiction of Civil Court  Barred  - Save as provided in sections 117 and 118, no civil court shall have 
jurisdiction to deal with or decide any question arising from or relating to anything done or purported to be 
done under this Act - section 162 of CGST Act. 
Section 117 of CGST Act makes provision for appeal to High Court. Section 118 of CGST Act makes 
provision for appeal to Supreme Court. Excluding that, civil court has no jurisdiction in GST matters. 
Thus, appeal cannot be f iled in civil court. 
CA DHRUV AGRAWAL – National Chairman Taxation Committee-All India Confederation of Small & Micro Industries Association  
 
 
APPEAL PROVISIONS  IN GST 
 
 
 
 
Adjudicating  Authority 
 
 
 
 
1                                                1 
 
Appellate Authority-                                                                      Rcvisional  Authority  011 his 
Appeal within  three  months                                                                   own wil hin three  years 
Section   107                                                                                         Section   108 
 
 
 
 
 
 
 
 
 
 
 
 
 
r 
 
National  Bench/Regional                                                                 State  Bench/  Area Bench  . If 
Bench-   If one of issue relates                                                               Issue  relating  to place of 
10  place of supply                                                                       supply  not involved Appeal 
Appeal within  three  months                                                                   within  three  months- 
Section   109(5)                                                                                    Section   109(7) 
 
 
 
 
 
 
 
 
 
 
 
 
1                                                
1 
High Court  on
 
Supreme   Coun   . 
Section   118 or SlP 
If High Court  certifies  to 
be fi1 case  For appeal 
before  Supreme  CoUJ1 
substantial   question 
of law-  Section  117 
 
 
 
 
32.1-1 Department cannot  file appeal  if amount is below specified monetary limit 
CA DHRUV AGRAWAL – National Chairman Taxation Committee-All India Confederation of Small & Micro Industries Association  
 
 
National Litigation Policy formulated by Government of India aims to reduce Government litigation. The Policy 
lays down fo lowing policy in respect of revenue matters - (a) Appeals should not be f iled where revenue 
i nvolvement is not high (b) Appeals should not be f iled if the matter is covered by a series of judgments of the 
Tribunal and High Courts which have held the field and have not been cha lenged before Supreme Court (c) 
No appeal shall be f iled when the assessee has acted in accordance with the long standing practice and also 
merely because of change of opinion on the part of the jurisdictional officers. 
Corresponding provisions have been made in GST law. 
 
The Board(CBEC)  may, on the recommendation of the GST Council, from time to time, issue orders or 
instructions or directions fixing such monetary limits, as it may deem fit, for the purposes of regulating the filing 
of appeal or application by the tax officer under the provisions of this Chapter - section 120(1) of CGST Act. 
It shall not preclude such GST officer from filing appeal or application in any other case involving the same or 
similar issues or questions of law. 
No person, being a party in appeal or application shall contend that the GST officer has acquiesced in the 
decision on the disputed issue by not filing an appeal or application. 
Thus, non-filing of appeal by department cannot be used as precedent. 
 
The Appe late Tribunal or court hearing such appeal or application shall have regard to the circumstances 
under which appeal or application was not f iled by the GST Officer in pursuance of the orders or instructions 
or directions - section 120(4) of CGST Act. 
32.1-2 Non Appealable decisions  and orders 
 
As per section 121 of CGST Act, no appeal shall lie against any decision taken or order passed by a GST 
officer if such decision taken or order passed relates to any one or more of the fo lowing matters — 
 
(a)   An order of the Commissioner  or other authority for transfer of proceeding from one officer to 
another officer; or 
(b)   An order pertaining to the seizure or retention of books of account, register and other documents; or 
(c)   An order sanctioning prosecution under the Act; or 
(d)   An order passed under section 80 [order granting or not granting instalments for payment of taxes]. 
These are overriding provisions. 
Of course writ jurisdiction of High Court and Supreme Court is not affected. 
 
32.1-3 Interest on delayed refund of pre-deposit 
 
Where an amount deposited  by the appe lant under section 107(6) or 112(8) is required to be refunded 
consequent to any order of the Appe late Authority or of the Appe late Tribunal, interest at the rate specified 
under section 56 shall be payable in respect of such refund from the date of payment of the amount ti l the date 
of refund of such amount - section 115 of CGST Act. 
32.1-4 Bar of jurisdiction of civil courts 
 
Save as provided by sections 117 and 118 (Appeal before High Court and Supreme Court), no civil court 
shall have jurisdiction to deal with or decide any question arising from or relating to anything done or purported 
to be done under this Act - section 162 of CGST Act. 
32.2 First Appeal before Appellate Authority 
 
Any person aggrieved by any decision or order passed against him under CGST Act or SGST Act or UTGST 
Act or IGST Act by an adjudicating authority, may appeal to such Appe late Authority as may be prescribed 
CA DHRUV AGRAWAL – National Chairman Taxation Committee-All India Confederation of Small & Micro Industries Association  
 
 
within three months from the date on which such decision or order is comm unicated to him - section 107(1) of 
CGST Act 
 
Adjudicating  Authority - "adjudicating authority" means any authority, appointed or authorised to pass any 
order  or decision under  this  Act,  but does  not include  the  Central Board  of Excise  and  Customs,  the 
Revisional Authority,  the  Authority  for  Advance  Ruling,  the  Appe late  Authority  for  Advance  Ruling,the 
Appe late Authority and the Appe late Tribunal - section 2(4) of CGST Act. 
Appellate Authority - "Appe late Authority" means an authority appointed or authorised to hear appeals as 
referred to in section 107 - section 2(8) of CGST Act. 
Departmental appeal  before Appellate Authority - The Commissioner may, of his own motion, or upon 
request from Commissioner of SGST or UTGST, ca l for and examine the record of any proceeding in which 
an adjudicating authority has passed any decision or order under CGST/SGST/UGST/IGST  Act, for the 
purpose of satisfying himself as to the legality or propriety of the said decision or order and may, by order, 
direct any officer subordinate  to him to apply to the Appe late Authority within six months from date of 
communication of the said decision or order for the determination of such points arising out of the said decision 
or order as may be specified by the Commissioner in his order - section 107(2) of CGST Act. 
This will be considered as departmental appeal before Appe late Authority. 
 
Appeal in prescribed  form and verified - Every appeal under this section shall be in the prescribed form 
and shall be verified in the prescribed manner- section 107(5) of CGST Act. 
Condonation of delay in filing appeal -Appe late Authority can condone delay upto one month beyond 3 
months for appe lant/6 months for department if he is satisfied that the appe lant was prevented by sufficient 
cause from presenting the appeal within the aforesaid period of three months or six months - section 107(4) of 
CGST Act. 
Authorities  created  by  statute  cannot  apply  Limitation  Act,  1963.  They  cannot  condone  delay  unless 
empowered by Statute - Om Prakash v. Ashwini Kumar Bassi (2010) 258 ELT 5 (SC). 
Delay beyond aforesaid  period can be condoned if assessee was pursuing remedy bona fide in wrong 
forum - In Ketan V Parekh v. Directorate  of Enforcement (2011) 110 SCL 724 = 16 Latest Case221 
= 275 ELT 3 (SC). It was held that though section 5 of Limitation Act does not apply to appeals before other 
authorities, section 14 of Limitation Act (of condoning delay when appeal fine bona fide in wrong forum) can 
apply in an appropriate case. 
This view has been confirmed in M P Steel Corporation  v. CCE (2015) 57 Latest Case399 = 319 ELT 
373= 80 VST 402(SC) * Gilco Exports v. UOI (2015) Latest Case443 (P&H HC). 
These decisions apply to appeal before Appe late Authority. 
In Cairn Energy India v. CCE (2008) 221 ELT 440 (CESTAT), assessee f ile appeal with Tribunal against 
order of Joint Commissioner. It was held that delay due to f ling of appeal in wrong forum is condonable. 
This view has been confirmed in CCE v. Cairn Energy India P Ltd. (2015) 49 GST 395 = 52 CA Dhruv 
Agrawal.com 
371 = 316 ELT 612 (AP HC DB), where it was observed that there is di fference between 'condonation of 
delay' and exclusion of period'. Section 5 of Limitation Act is available to assessee as a matter of ri ght.- same 
view in Sonia Overseas P Ltd. v. UOI (2015) 316 ELT 578 (P&H HC DB) *M P Steel Corporation  v. 
CCE (2015) 57 Latest Case399 = 319 ELT 373 = 80 VST 402(SC) * Gilco Exports v. UOI (2015) 317 
ELT 229 (P&H HC DB). 
 
Mandatory  pre-deposit  10% of tax demand  before filing appeal  before appellate  authority  - Appeal 
cannot be f iled unless the appe lant has deposited a sum in fu l of tax, interest, fee and penalty arising out of 
Page 5


about:blank 1/8 
CA DHRUV AGRAWAL – National Chairman Taxation Committee-All India Confederation of Small & Micro Industries Association  
 
 
 
 
 
 
 
 
 
 
 
 
CHAPTER 32 - Fi rst Appeal and revi si on i n GST 
 
 
 
 
 
CHAPTER 32 
 
First Appeal and revision in GST 
 
32.1 Appeal against  adjudication order 
 
CGST makes provisions in respect of appeals against orders passed by adjudicating authority. 
 
The CGST Act makes provisions  of first appeal before  'Appe late Authority'  and second  appeal before 
'National Goods and Service Tax Appe late Tribunal' (Appe late Tribunal). 
 
Appe late Authority will be departmental officer. Pre-deposit of 10% tax is required to be made before f iling 
appeal before Appe late Authority. 
The Appe late Tribunal will be common for CGST, IGST, UGST and SGST. The Appe late Tribunal will have 
Member (Judicial), Member (Centre) and Member (State). Thus, Appe late Tribunal will have a three member 
bench. 
However, President and State President can entrust matters to division bench consisting of two members. 
Sma l matters upto Rs 5 lakhs can be decided by si ngle member bench of Appe late Tribunal. 
There is provision of mandatory pre-deposit for f iling appeal. For first appeal, it is equal to 10% of disputed 
liability of tax. 
For appeal before Appe late Tribunal, further 20% of disputed tax liability is payable. 
 
Appeal against order of Appe late Tribunal can be before High Court only if substantial question of law is 
involved. 
If the matter involves interpretation of 'place of supply', appeal lies before Supreme Court and not before High 
Court. 
 
Jurisdiction of Civil Court  Barred  - Save as provided in sections 117 and 118, no civil court shall have 
jurisdiction to deal with or decide any question arising from or relating to anything done or purported to be 
done under this Act - section 162 of CGST Act. 
Section 117 of CGST Act makes provision for appeal to High Court. Section 118 of CGST Act makes 
provision for appeal to Supreme Court. Excluding that, civil court has no jurisdiction in GST matters. 
Thus, appeal cannot be f iled in civil court. 
CA DHRUV AGRAWAL – National Chairman Taxation Committee-All India Confederation of Small & Micro Industries Association  
 
 
APPEAL PROVISIONS  IN GST 
 
 
 
 
Adjudicating  Authority 
 
 
 
 
1                                                1 
 
Appellate Authority-                                                                      Rcvisional  Authority  011 his 
Appeal within  three  months                                                                   own wil hin three  years 
Section   107                                                                                         Section   108 
 
 
 
 
 
 
 
 
 
 
 
 
 
r 
 
National  Bench/Regional                                                                 State  Bench/  Area Bench  . If 
Bench-   If one of issue relates                                                               Issue  relating  to place of 
10  place of supply                                                                       supply  not involved Appeal 
Appeal within  three  months                                                                   within  three  months- 
Section   109(5)                                                                                    Section   109(7) 
 
 
 
 
 
 
 
 
 
 
 
 
1                                                
1 
High Court  on
 
Supreme   Coun   . 
Section   118 or SlP 
If High Court  certifies  to 
be fi1 case  For appeal 
before  Supreme  CoUJ1 
substantial   question 
of law-  Section  117 
 
 
 
 
32.1-1 Department cannot  file appeal  if amount is below specified monetary limit 
CA DHRUV AGRAWAL – National Chairman Taxation Committee-All India Confederation of Small & Micro Industries Association  
 
 
National Litigation Policy formulated by Government of India aims to reduce Government litigation. The Policy 
lays down fo lowing policy in respect of revenue matters - (a) Appeals should not be f iled where revenue 
i nvolvement is not high (b) Appeals should not be f iled if the matter is covered by a series of judgments of the 
Tribunal and High Courts which have held the field and have not been cha lenged before Supreme Court (c) 
No appeal shall be f iled when the assessee has acted in accordance with the long standing practice and also 
merely because of change of opinion on the part of the jurisdictional officers. 
Corresponding provisions have been made in GST law. 
 
The Board(CBEC)  may, on the recommendation of the GST Council, from time to time, issue orders or 
instructions or directions fixing such monetary limits, as it may deem fit, for the purposes of regulating the filing 
of appeal or application by the tax officer under the provisions of this Chapter - section 120(1) of CGST Act. 
It shall not preclude such GST officer from filing appeal or application in any other case involving the same or 
similar issues or questions of law. 
No person, being a party in appeal or application shall contend that the GST officer has acquiesced in the 
decision on the disputed issue by not filing an appeal or application. 
Thus, non-filing of appeal by department cannot be used as precedent. 
 
The Appe late Tribunal or court hearing such appeal or application shall have regard to the circumstances 
under which appeal or application was not f iled by the GST Officer in pursuance of the orders or instructions 
or directions - section 120(4) of CGST Act. 
32.1-2 Non Appealable decisions  and orders 
 
As per section 121 of CGST Act, no appeal shall lie against any decision taken or order passed by a GST 
officer if such decision taken or order passed relates to any one or more of the fo lowing matters — 
 
(a)   An order of the Commissioner  or other authority for transfer of proceeding from one officer to 
another officer; or 
(b)   An order pertaining to the seizure or retention of books of account, register and other documents; or 
(c)   An order sanctioning prosecution under the Act; or 
(d)   An order passed under section 80 [order granting or not granting instalments for payment of taxes]. 
These are overriding provisions. 
Of course writ jurisdiction of High Court and Supreme Court is not affected. 
 
32.1-3 Interest on delayed refund of pre-deposit 
 
Where an amount deposited  by the appe lant under section 107(6) or 112(8) is required to be refunded 
consequent to any order of the Appe late Authority or of the Appe late Tribunal, interest at the rate specified 
under section 56 shall be payable in respect of such refund from the date of payment of the amount ti l the date 
of refund of such amount - section 115 of CGST Act. 
32.1-4 Bar of jurisdiction of civil courts 
 
Save as provided by sections 117 and 118 (Appeal before High Court and Supreme Court), no civil court 
shall have jurisdiction to deal with or decide any question arising from or relating to anything done or purported 
to be done under this Act - section 162 of CGST Act. 
32.2 First Appeal before Appellate Authority 
 
Any person aggrieved by any decision or order passed against him under CGST Act or SGST Act or UTGST 
Act or IGST Act by an adjudicating authority, may appeal to such Appe late Authority as may be prescribed 
CA DHRUV AGRAWAL – National Chairman Taxation Committee-All India Confederation of Small & Micro Industries Association  
 
 
within three months from the date on which such decision or order is comm unicated to him - section 107(1) of 
CGST Act 
 
Adjudicating  Authority - "adjudicating authority" means any authority, appointed or authorised to pass any 
order  or decision under  this  Act,  but does  not include  the  Central Board  of Excise  and  Customs,  the 
Revisional Authority,  the  Authority  for  Advance  Ruling,  the  Appe late  Authority  for  Advance  Ruling,the 
Appe late Authority and the Appe late Tribunal - section 2(4) of CGST Act. 
Appellate Authority - "Appe late Authority" means an authority appointed or authorised to hear appeals as 
referred to in section 107 - section 2(8) of CGST Act. 
Departmental appeal  before Appellate Authority - The Commissioner may, of his own motion, or upon 
request from Commissioner of SGST or UTGST, ca l for and examine the record of any proceeding in which 
an adjudicating authority has passed any decision or order under CGST/SGST/UGST/IGST  Act, for the 
purpose of satisfying himself as to the legality or propriety of the said decision or order and may, by order, 
direct any officer subordinate  to him to apply to the Appe late Authority within six months from date of 
communication of the said decision or order for the determination of such points arising out of the said decision 
or order as may be specified by the Commissioner in his order - section 107(2) of CGST Act. 
This will be considered as departmental appeal before Appe late Authority. 
 
Appeal in prescribed  form and verified - Every appeal under this section shall be in the prescribed form 
and shall be verified in the prescribed manner- section 107(5) of CGST Act. 
Condonation of delay in filing appeal -Appe late Authority can condone delay upto one month beyond 3 
months for appe lant/6 months for department if he is satisfied that the appe lant was prevented by sufficient 
cause from presenting the appeal within the aforesaid period of three months or six months - section 107(4) of 
CGST Act. 
Authorities  created  by  statute  cannot  apply  Limitation  Act,  1963.  They  cannot  condone  delay  unless 
empowered by Statute - Om Prakash v. Ashwini Kumar Bassi (2010) 258 ELT 5 (SC). 
Delay beyond aforesaid  period can be condoned if assessee was pursuing remedy bona fide in wrong 
forum - In Ketan V Parekh v. Directorate  of Enforcement (2011) 110 SCL 724 = 16 Latest Case221 
= 275 ELT 3 (SC). It was held that though section 5 of Limitation Act does not apply to appeals before other 
authorities, section 14 of Limitation Act (of condoning delay when appeal fine bona fide in wrong forum) can 
apply in an appropriate case. 
This view has been confirmed in M P Steel Corporation  v. CCE (2015) 57 Latest Case399 = 319 ELT 
373= 80 VST 402(SC) * Gilco Exports v. UOI (2015) Latest Case443 (P&H HC). 
These decisions apply to appeal before Appe late Authority. 
In Cairn Energy India v. CCE (2008) 221 ELT 440 (CESTAT), assessee f ile appeal with Tribunal against 
order of Joint Commissioner. It was held that delay due to f ling of appeal in wrong forum is condonable. 
This view has been confirmed in CCE v. Cairn Energy India P Ltd. (2015) 49 GST 395 = 52 CA Dhruv 
Agrawal.com 
371 = 316 ELT 612 (AP HC DB), where it was observed that there is di fference between 'condonation of 
delay' and exclusion of period'. Section 5 of Limitation Act is available to assessee as a matter of ri ght.- same 
view in Sonia Overseas P Ltd. v. UOI (2015) 316 ELT 578 (P&H HC DB) *M P Steel Corporation  v. 
CCE (2015) 57 Latest Case399 = 319 ELT 373 = 80 VST 402(SC) * Gilco Exports v. UOI (2015) 317 
ELT 229 (P&H HC DB). 
 
Mandatory  pre-deposit  10% of tax demand  before filing appeal  before appellate  authority  - Appeal 
cannot be f iled unless the appe lant has deposited a sum in fu l of tax, interest, fee and penalty arising out of 
CA DHRUV AGRAWAL – National Chairman Taxation Committee-All India Confederation of Small & Micro Industries Association  
 
 
order, as admitted by him and ten per cent of remaining amount of tax in dispute arising from the said order, in 
relation to which the appeal has been f iled - section 107(6) of CGST Act. 
Opportunity of hearing  - The Appe late Authority shall give an opportunity to the appe lant of being heard - 
section 107(8) of CGST Act. 
Upto three  Adjournment  of hearing  - The Appe late Authority may, if sufficient cause is shown at any 
stage of hearing of an appeal, grant time, from time to time, to the parties or any of them and adjourn the 
hearing of the appeal for reasons to be recorded in writing. However, no such adjournment shall be granted 
more than three times to a party during hearing of the appeal - section 107(9) of CGST Act. 
Additional  grounds  at the time of hearing  - The Appe late Authority may, at the hearing of an appeal, 
a low an appe lant to go into any ground of appeal not specified in the grounds of appeal, if he is satisfied that 
the omission of that ground from the grounds of appeal was not wilful or unreasonable - section 107(10) of 
CGST Act. 
Order by Appellate Authority - The Appe late Authority sha l, after making such further inquiry as may be 
necessary, pass such order, as he thinks just and proper, confirming, modifying or annu ling the decision or 
order appealed against, but shall not refer the case back to the adjudicating authority that passed the said 
decision or order - section 107(12) of CGST Act. 
Thus, Appe late Authority cannot remand the matter to adjudicating authority. 
 
An order enhancing any fee or penalty or fine in lieu of confiscation or confiscating goods of greater value or 
reducing the amount of refund or input tax credit shall not be passed unless the appe lant has been given a 
reasonable opportunity of showing cause against the proposed order. 
Enhancing fee, fine or penalty only after issuing notice - Appe late Authority can enhance fee, fine or 
penalty after giving show cause notice and opportunity of hearing - first proviso to section 107(11) of CGST 
Act. 
Order confirming  additional  tax or disallowing input tax credit only after issuing notice - Appe late 
Authority has powers to enhance tax demanded or disa low further input tax credit. However, this can be done 
only after issue of notice. 
Where the Appe late Authority is of the opinion that any tax has not been paid or short-paid or erroneously 
refunded, or where input tax credit has been wrongly availed or utilised, no order requiring the appe lant to pay 
such tax or input tax credit shall be passed unless the appe lant is given notice to show cause against the 
proposed order and the order is passed within the time limit specified under section 73 or section 74 - second 
proviso to section 107(11) of CGST Act. 
Order in writing with reasons  - The order of the Appe late Authority disposing of the appeal shall be in 
writing and shall state the points for determination,  the decision thereon and the reasons for the decision - 
section 107(12) of CGST Act. 
Time limit for passing order - The Appe late Authority sha l, where it is possible to do so, hear and decide 
every appeal within a period of one year from the date on which it is f iled. If the issuance of order is stayed by 
an order of a Court or Tribunal, the period of such stay shall be excluded in computing the period of one year 
- section 107(13) of CGST Act. 
 
Distribution  of copies of order - The Appe late Authority shall comm unicate the order passed by him to the 
appe lant, respondent and to the adjudicating authority. - section 107(14) of CGST Act. 
A copy of the order passed by the Appe late Authority shall also be sent to the jurisdictional Commissioner or 
the authority designated by him in this behalf and the jurisdictional Commissioner of SGST/UTGST or the