GST Adjudication & Appeals

Adjudication and Appeals provisions under GST. Includes provisions as per Chapter XVIII of CGST Act, 2017 together with Chapter XIII of CGST Rules, 2017.

1. Adjudication &
Appeals

2. Disclaimer 2
Theinformationcitedinthispresentationhasbeendrawnfromvarioussources(including
studymaterialpreparedbyTheInstituteofCostAccountantsofIndiaandTheInstituteof
CharteredAccountantsofIndia).Whileeveryeffortshavebeenmadetokeepthe
informationinthispresentationerrorfree,noresponsibilityforanytypographicalorclerical
errorwhichmayhavecreptinwhilecompilingtheinformationprovidedcanbetaken.
Thepresentationhasbeenpreparedtoprovideanoverviewoftheapplicablelawpertaining
tothesubjectmatter.Fordetailedinsightandforbetterunderstanding,itsisadvisedtorefer
torelevantprovisionsintheActandtherelatedrules&notifications.

3. What is Adjudication? 3
•“Theactofjudgingacase,acompetitionorargument,ortomakeaformaldecisionabout
something”–CambridgeDictionary
•AlegalprocessofresolvingalisoradisputebetweentaxpayerandtheDepartment.
•Theonewhoadjudicatesiscalledthe“AdjudicatingAuthority”.
•IssueofAdjudicationOrderisknownas“Order-in-original”.

4. Adjudicating Authority 4
•“AdjudicatingAuthority”meansanyauthority,appointedorauthorisedtopassanyorder
ordecisionunderthisAct,butdoesnotincludetheCBIC,theRevisionalAuthority,the
AuthorityforAdvanceRuling,theAppellateAuthorityforAdvanceRuling,theAppellate
Authority,theAppellateTribunalandtheNationalAntiProfiteeringAuthority.Sec2(4)of
CGSTAct
•SuchAuthoritycanbeoftherankofAdditional/JointCommissionerorDeputy/
AssistantCommissioner.

5. Non-appealable decisions –Sec 121 5
•AnOrdertotransferofproceedingsfromoneofficertoanotherofficer
•AnOrderpertainingtoseizureofbooksofaccounts,registersorotherdocumentsetc.
•AnOrdersanctioningprosecutionundertheAct
•AnOrderpassedtogrant/notgrantextensionoftimelimitforpaymentoftaxor
paymentofduesininstalments

6. Normal Appeal Process
Adjudicating
Authority
Appellate
Authority
Appellate
Tribunal
High Court
Supreme
Court

7. Appeal Process in GST
Adjudicating
Authority
Appellate
Authority
Appellate
Tribunal
High Court
Supreme
Court
Revisional
Authority
Civil court
have no
jurisdiction

8. Appeal Process in GST
Adjudicating
Authority
Appellate
Authority
Appellate
Tribunal
High Court
Supreme
Court
Revisional
Authority

9. Appellate Authority 9
•FirstlevelofauthoritytoappealagainsttheOrderpassedbyanAdjudicatingAuthority.
•IftheAdjudicationOrderhasbeenpassedbyDeputy/AssistantCommissioner/
Superintendent,theappealliesbeforeanyofficernotbelowJointCommissioner(Appeals).
IftheOrderhasbeenpassedbyAdditional/JointCommissioner,theappealliesbefore
Commissioner(Appeals).

10. Appeal to Appellate Authority –Sec 107
Tobefiledwithin3monthsofthe
AdjudicationOrder(6monthsincaseDept.
wantstoappeal).Condonationallowedbyup
to1month.
Appealwithsupportingdocstobefiledin
formGSTAPL-01orGSTAPL-03(Dept).
Provisionalacknowledgementisissued.
CertifiedcopyofOrdertobesubmitted
within7daysoffilingtheappeal.Final
acknowledgmentindicatingappealnumberis
generatedinformGSTAPL-02
Pre-deposit100%ofundisputedamount+
10%ofthedisputedtaxamount(subjectto
maxRs.25Cr.).
Recoveryproceedingsdeemedstayedonce
theappealfiledandamountpaid.
Theappellantshallbegivenopportunityto
beheard.Maximum3adjournmentsallowed.
Additionalground(s)ofappealnotspecified
earliercanbeadded,providedtheAuthority
deemsthatsuchomissionwasnotwilfulor
unreasonable.
AppellateAuthoritytoinquire,hearandpass
theOrderwithin1yearinformGSTAPL-04
IftheissuanceofOrderisstayedbyCourtor
Tribunal,theperiodofsuchstayshallbe
excludedincomputingtheperiodof1year.

11. Appeal to Appellate Authority –Sec 107
AppellateAuthoritycan’treferthecaseback
totheAdjudicatingAuthority.
Enhancementoffee/penalty/fineor
confiscatinggoodsofgreatervalueor
reducingrefund/Inputcreditnottobe
passedunlessappellantgivenreasonable
opportunityofshowingcause.
Ordershallbeinwriting,statingthepoints
fordetermination,thedecisionthereonand
thereasonsforsuchdecision.
Orderpassedshallbecommunicatedtothe
appellant,respondentandtotheadjudicating
authority.
CopyoftheOrdershallalsobesenttothe
jurisdictionalCommissionerortheauthority
designatedbyhiminthisbehalf.
Subjecttofurtherappeal,theOrderofthe
AppellateAuthorityshallbefinalandbinding
ontheparties.

12. Appeal Process in GST
Adjudicating
Authority
Appellate
Authority
Appellate
Tribunal
High Court
Supreme
Court
Revisional
Authority

13. Revisional Authority –Sec 108 13
•Powers
•Canworksuo-motooruponinformationreceivedbyhimorontherequestoftheCommissioner.
•Cancallfororexaminerecordofanyproceedings.HemaythenproceedtostaytheoperationsoftheOrder
•ifheconsidersthatdecisionorOrderpassedbyanyofficersubordinatetohimiserroneous,prejudicial,illegal,
improperormissedmaterialfacts.
•inconsequenceofanobservationbyCAG
•Aftergivinganopportunitytobeheard,canpassanOrderenhancing,modifyingorannullingtheearlier
Order.
•However,can’texercisepowersif:
•Thematterhasbeensubjectedtoappealwithoneoftheauthoritiesintheappealhierarchy
•ThewindowtoappealtotheAppellateAuthorityisopenormorethan3yearshaveelapsedofpassingofthe
Orderwhichissoughttoberevised.
•TheOrderhasalreadybeentakenupforrevisiononce
•ArevisionalOrderhasalreadybeenpassed(RevisionalOrdercannotberevised)

14. Revisional Authority –Sec 108 14
•TopasstheOrderonanypointwhichhasnotbeenraisedanddecidedinanappealwithin1year
oftheOrderinsuchappealor3yearsfromthedateofpassingoftheoriginalOrder,whicheveris
later.
•Subjecttothefactthatitmaybeappealedfurther,OrderoftheRevisionalAuthorityshallbefinal
andbindingontheparties.
•IfthedecisionorOrderinvolvesanissueinwhichanappealtohigherauthoritiesispendingfor
someotherproceedings,theperiodspentbetweenthedateofthedecisionofthetwoauthorities
shallbeexcludedincomputingtheperiodoflimitation.
•IfissuanceofanOrderisstayedbytheOrderofaCourtorAppellateTribunal,theperiodof
suchstayshallbeexcludedincomputingtheperiodoflimitation.
•IncasetheOrderislikelytoaffectthepersonadversely,noticeinformGSTRVN-01shallbe
issuedtogivethesaidpersonareasonableopportunitytobeheard.
•TheAuthorityshallissuetheOrderprovidingsummaryandthefinaldemandamountinform
GSTAPL-04.

15. Appeal Process in GST
Adjudicating
Authority
Appellate
Authority
Appellate
Tribunal
High Court
Supreme
Court
Revisional
Authority

16. Appellate Tribunal –Sec 109 16
•TobeconstitutedandnotifiedwiththerecommendationoftheGSTCouncil
•TohearappealagainstOrderpassedbyAppellateAuthorityorRevisionalAuthority
•PowerexercisedthroughNationalBench,RegionalBenches,StateBenches&Area
Benches
•Constitutionofthebench
•Nationalbench-President,oneTechnicalmember(Centre)andoneTechnicalmember(State)
•Regional/State/Areabench–Judicialmember,oneTechnicalmember(Centre)andoneTechnical
member(State){SeniormostjudicialmemberinthestateshallbedesignatedasStatePresident}
•NationalorRegionalBenchtohearmatterswhereoneoftheissuerelatestoplaceof
supplyandStateorAreaBenchwillhearmattersrelatingtoothertransactions.

17. Appellate Tribunal –Sec 109 17
•President/StatePresidentshall,bygeneralorspecialOrder,distributethebusinessortransfer
casesamongRegionalBenchesand,asthecasemaybe,totheAreaBenches.
•Intheabsenceofamemberduetovacancyorotherwise,Presidentofresp.Tribunalcanentrust
matterto2memberbench
•IncasetheamountinvolvedisuptoRs.5Lacsandthecasedoesn’tinvolveanyquestionoflaw,
withtheapprovalofthePresidentofresp.Tribunal,mattercanbeheardbyasinglemember
Bench.
•Mattertobedecidedaccordingtotheopinionofthemajority.
•Incaseofadeadlockinopinion,theresp.Presidentmayaskoneormoremembersoftheother
Benchfortheiropinionandthenthemattershallbedecidedonmajority.
•NoactorproceedingsoftheAppellateTribunalshallbequestionedorshallbeinvalidmerelyon
thegroundoftheexistenceofanyvacancyordefectintheconstitutionoftheAppellateTribunal.

18. Appellate Tribunal –Sec 110 18
•President-JudgeoftheSupremeCourtorChiefJusticeofaHighCourtorJudgeofa
HighCourtforaperiodnotlessthan5years
•Judicialmember–JudgeofahighcourtorDistrictJudgequalifiedtobeappointedasa
JudgeofaHighCourtorMemberofIndianLegalServiceandhasheldapostnotless
thanAdditionalSecretaryfor3years
•Technicalmember(Centre)-MemberofIndianRevenue(CustomsandCentralExcise)
Service,GroupA,andhascompletedatleast15yearsofserviceinGroupA
•Technicalmember(State)-OfficeroftheStateGovernmentnotbelowtherankof
AdditionalCommissionerofVATortheStateGSTorsuchrankasmaybenotifiedbythe
concernedStateGovernmentontherecommendationsoftheCouncilwithatleast3years
ofexperienceintheadministrationofanexistinglawortheStateGSTorinthefieldof
financeandtaxation.

19. Appellate Tribunal –Sec 110 19
•ThePresidentandtheJudicialMembersoftheNationalBenchandtheRegionalBenches
shallbeappointedbytheGovernmentafterconsultationwiththeChiefJusticeofIndia.
•TheTechnicalMember(Centre)andTechnicalMember(State)oftheNationalBenchand
RegionalBenchesshallbeappointedbytheGovernmentontherecommendationsofa
SelectionCommittee.
•TheJudicialMemberoftheStateBenchorAreaBenchesshallbeappointedbytheState
GovernmentafterconsultationwiththeChiefJusticeoftheHighCourtoftheState.
•TheTechnicalMember(Centre)oftheStateBenchorAreaBenchesshallbeappointedby
theCentralGovernmentandTechnicalMember(State)oftheStateBenchorArea
BenchesshallbeappointedbytheStateGovernment.
•ThetermofPresidentandtheJudicialmembershallbe3yearsandthatofthetechnical
member,5years.Theyareeligibleforreappointmentunlessattainedsuperannuation.

20. Powers of Appellate Tribunal –Sec 111 20
•AppellateTribunalshallhavepowertoregulateitsownprocedure.
•ForthepurposesofdischargingitsfunctionsunderGST,theTribunalshallhavethesame
powersasarevestedinaCivilCourtundertheCodeofCivilProcedure,1908.
•Theymay
•summonandenforcetheattendanceofanypersonandexamininghimonoath.
•Requirethediscoveryandproductionofdocuments.
•Receiveevidenceonaffidavits
•requisitionanypublicrecord,document,copyofsuchrecordordocumentfromanyoffice(subjectto
Sec123&124ofIndianEvidenceAct,1872)
•issuecommissionsfortheexaminationofwitnessesordocuments.
•dismissarepresentationfordefaultordecidingitexparte.
•setasideanyOrderofdismissalofanyrepresentationfordefaultoranyOrderpassedbyitexparte.

21. Powers of Appellate Tribunal –Sec 111 21
•AnyOrdermadebytheAppellateTribunalmaybeenforcedbyitinthesamemannerasif
itwereadecreemadebyacourtinasuitpendingtherein.
•ItshallbelawfulfortheAppellateTribunaltosendforexecutionofitsorderstothecourt
withinthelocallimitsofwhosejurisdiction,
•inthecaseacompany,wheretheregisteredofficeofthecompanyissituated.
•inthecaseofanyotherperson,wherethepersonconcernedvoluntarilyresidesorcarriesonbusiness
orpersonallyworksforgain.
•AllproceedingsbeforetheAppellateTribunalshallbedeemedtobejudicialproceedings
(withinthemeaningofSec193,196and228oftheIndianPenalCode)
•TheAppellateTribunalshallbedeemedtobeCivilCourtforthepurposesofSec195and
ChapterXXVIoftheCodeofCriminalProcedure,1973.

22. Appeal to Appellate Tribunal –Sec 112
Tobefiledwithin3monthsoftheOrderof
AppellateAuthority(6monthsincaseDept.
wantstoappeal).Condonationallowedupto
3months.
Tribunalmayrefusetoadmitpettyappeals
wherethemonetaryvalueinvolveddoesn’t
exceedRs.50,000
TobefiledinformGSTAPL-05together
withrelevantdocs.FeeRs.1,000perlacof
thedisputedamountinvolved,subjecttomax
Rs.25,000
Within7daysoffilingtheappeal,certified
copytobesubmitted.Final
acknowledgementandappealnumberisthen
issuedinformGSTAPL-02
Dept.tofileappealinformAPL-07without
fee
MemorandumofCross-objectionstobefiled
within45daysofthereceiptofthenoticein
formGSTAPL-06.
Pre-deposit100%ofundisputedamount+
20%ofthedisputedtaxamount*(subjectto
maxRs.50Cr.).
*The20%ofthedisputedamountisoverandabove
theamountalreadydepositedatthetimeofappealto
AppellateAuthority.
Recoveryproceedingsdeemedstayedonce
theappealfiledandamountpaid.

23. Orders of Appellate Tribunal –Sec 113
Thepartieswillbegivenanopportunitytobe
heard.
Upto3adjournmentsallowed
Tribunaltohearanddecidetheappealwithin
1yearoffiling(asfaraspossible)
Tribunalmayconfirm,modifyorannulthe
Orderappealedagainst.
Canremandthematterbacktothelower
authorities(AA,RAorAdjudicating
Authority)withdirections.
Statementindicatingfinaldemandwillbe
issuedinformGSTAPL-04
CopyoftheOrderissenttotheappellant,
theJurisdictionalCommissioner,AA/RAor
AdjudicatingAuthority.
Ifbroughttonoticewithin3months,may
amend*anyOrderpassedbyitsoastorectify
anyerrorapparentonthefaceoftherecord.
*Amendment,ifitincreasesliabilityofthe
otherpartynottobepassedunlessappellant
givenreasonableopportunity
Nofeeforapplicationmadeforrectification
oferrorsinOrder.
Subjecttofurtherappeal,theOrderisfinal
andbindingontheparties.

24. Other matters 24
•Rule112–Exceptincertaincircumstances,noevidences,otherthantheonesproducedduringthe
courseoftheproceedingsbeforetheadjudicatingauthorityortheAppellateAuthorityshallbe
allowedtobeproducedbeforetheAppellateAuthorityortheAppellateTribunal.
•Sec114–ThePresidentmaydelegateitsfinancialandadministrativepowerstoanymemberofthe
NationalorRegionalBench.However,suchpersonshallcontinuetoactunderthedirection,
controlandsupervisionofthePresident.
•Sec115–If,consequenttoanyOrderbyAppellateAuthorityorTribunal,anypredepositpaidby
theappellantduringtheappealprocessneedstoberefunded,interestattheratespecifiedu/s56
shallbepayableonthesaidamountfromthedateofpaymentoftheamounttillthedateof
refundofsuchamount.
•Sec116-Otherwisethanwhenrequiredtoappearpersonallyforexaminationonoathor
affirmation,thepersonmayappointanauthorisedrepresentativetoappearonhisbehalfforany
proceedingsundertheAct.

25. Authorised Representative –Sec 116 25
•Suchauthorisedrepresentativeshallbe,
•Hisrelativeorregularemployee
•AnadvocateentitledtopracticeinanyCourtinIndiaandhasnotbeendebarredfrompractice.
•PractisingCA/CMA/CS,providednotdebarredfrompractice
•RetiredofficerofCommercialTaxDeptwhohasworkednotbelowtherankthanthatofGroup-BGazetted
officerrankforaperiodofnotlessthan2yearsandmorethan1yearhaselapsedfromhisdateof
retirement/resignation.
•AuthorisedGSTpractitioner
•Disqualificationstoactasauthorisedrepresentative
•DismissedorremovedfromGovernmentservice
•ConvictedofanoffenceconnectedwiththeproceedingsoftheActsdealingwithimpositionoftaxonsale
orsupplyofgoodsorservices.
•Foundguiltyofmisconductbytheprescribedauthority.
•Adjudgedinsolvent,tillsuchtimetheinsolvencycontinues.

26. Appeal Process in GST
Adjudicating
Authority
Appellate
Authority
Appellate
Tribunal
High Court
Supreme
Court
Revisional
Authority

27. Appeal to the High Court –Sec 117
TohearOrderpassedbyStateorAreaBench
ofAppellateTribunal
Appeal,informGSTAPL-08,tobefiledwithin
180daysoftheTribunal’sOrder.Condonation
allowedoncasetocasebasis.
Admissionofappeal,onlyifthecaseinvolves
substantialquestionoflaw
HCshallformulatethequestionsandtheappeal
shallbeheardonlyonthequestionsso
formulated.HC,however,hastherighttotake
anyadditionalquestion(s),ifdeemfit.
Notwithstandingtheappeal,sumsduetothe
GovernmentasaresultofanOrderpassedby
Tribunalshallbepayable.
Casetobeheardbybenchconsistingofatleast
2judges.
Incaseofnomajority.additionaljudgesmaybe
calledtohearthecaseonlyonthepointswhere
theoriginaljudgeshadadifferenceofopinion.
Caseshallbedecidedbasismajorityofthe
opinionandshallbeeffectedbasedoncertified
copyofthejudgement.
Jurisdictionalofficertoissuestatementinform
GSTAPL-04indicatingthefinalamountof
demandconfirmedbytheHighCourt.
ProvisionsofCodeofCivilProcedurerelating
toappealstotheHighCourtshall,asfaras
possible,applyinthecaseofappeals.

28. Appeal Process in GST
Adjudicating
Authority
Appellate
Authority
Appellate
Tribunal
High Court
Supreme
Court
Revisional
Authority

29. Appeal to the Supreme Court –Sec 118
Tobefiledimmediatelyafter
OrderofNational/Regionalbenchofthe
AppellateTribunal
OrderoftheHighCourt,afterHCcertifies
thatthecaseisfitforanappealtothe
SupremeCourt.
ProvisionsofCodeofCivilProcedure,1908
relatingtoappealstotheSupremeCourtshall
applyinthecaseofappeals.
Notwithstandingtheappeal,sumsduetothe
GovernmentasaresultofanOrderpassed
bytheHighCourtshallbepayable.
SupremeCourtmayvary,upheldorreverse
theOrder.
Jurisdictionalofficertoissuestatementin
formGSTAPL-04indicatingthefinal
amountofdemandconfirmedbythe
SupremeCourt.

30. Thank You
Manmohan Daga
Daga & Associates
9804199500
[email protected]

31. Dept not to file appeal –Sec 120 31
•OntherecommendationsoftheCouncil,theBoardmay,fromtimetotime,issueOrders
orinstructionsordirectionsincongruencewiththeNationalLitigationPolicy.
•Iftheamountinvolvedisnothigh.Fixingmonetarylimitsistoberecommendedbythe
GSTcouncilfromtimetotime.
•InpursuancetotheOrderorinstructionsordirections,iftheofficerhasnotfiledan
appealagainstanydecision,thatcan’tberestrictiveforhimnottofileappealinanyother
caseinvolvingthesameorsimilarissuesorquestionsoflaw.
•NonfilingofappealbyDepartmentinsimilarcasescannotbeusedasaprecedentorasa
groundtoprotest/contest.

32. Admission of additional evidences –Rule
112
32
•WhenAdjudicatingAuthorityorAppellateAuthorityhasrefusedtoadmitevidenceswhich
shouldhavebeenadmitted.
•Wheretheappellantwaspreventedfromproducingtheevidenceswhichwerecalledupon
andwererelevanttothecase/groundofappeal.
•WheretheauthoritieshavemadeOrderwithoutgivingadequateopportunitiestoproduce
evidencesrelevanttothecase/groundofappeal.
•NoevidenceshallbeadmittedunlesstheAppellateAuthorityortheAppellateTribunal
recordsinwritingthereasonsforitsadmission.
•Suchadmissionshallbemadeonlyafterexaminingtheevidence/documentorcross-
examininganywitnessproducedorproducingevidencesinrebuttaltotheclaimbythe
appellant.