How to file an Appeal under GST?

By GSTBazaar

1st August 2017

 

In some cases, the taxpayer or the department might not agree with the adjudication order passed by the tax officer. Thus, a dispute arises between them. To solve these kinds of disputes proper channels of appeals are provided by the statute. In case a person or the department is aggrieved by the order passed against him by the adjudicating authority then he is empowered to file an appeal to appellate authority.

The Right to appeal is a statutory right thus every taxpayer can exercise this right. However, the statue has put some kind of restrictions like the time limit for filing appeal and requirement of minimum deposit for filing the appeal to prevent the misuse of this right.

However, in the following cases no appeal can be filed against the order passed-

1. An order to transfer the proceedings from one officer to another officer

2. An order to seize or retain books of account and other documents

3. An order sanctioning prosecution under the Act

4. An order allowing payment of tax and other amounts in installments

The four layer appeal structure for filing an appeal under the GST regime is as follows-

1.  Appeal to first appellate authority-

The person, who is aggrieved by the decision or order passed against him by an adjudicating authority, is empowered to file an appeal to the First Appellate Authority. The person making an appeal is required to deposit 10% of the amount in dispute.  Also, the appeal can only be filed by the aggrieved person. Further, the time limit for filing an appeal is 3months however, the first appellate authority has the power to provide the extension of 1 month if he is satisfied that there was sufficient cause for such delay.

In case the appeals are made in respect to SGST there are following two additional conditions for pre-deposit-

• The full amount of admitted liability is paid.

•  The pre-deposit amount not exceeding 50% of the amount in dispute, in a case involving a disputed tax liability of not less than Rs. 25 Crores can be ordered in case an application is made by the department.

After considering the appeal an order must be passed within the 1 year from date of the filing appeal.

2. Appeal to appellate tribunal

The tribunal is the second level in the system of filing appeal. An aggrieved person can make an appeal against the order passed by the first appellate authority to the appellate tribunal. It is at the discretion of tribunal whether to entertain the appeal involving an amount of 1 lakh or less or not. 

Further, an appeal can be made against the order of appellate authority within 3 of communication or order and appellate tribunal has the power to provide the extension of 1 month if he is satisfied that there was sufficient cause for such delay. In addition to this 10% of the amount involved in dispute shall be deposited as pre-deposit. 

In case the appeals are made in respect to SGST there are following two additional conditions are there for pre-deposit-

•  The full amount of admitted liability is paid.

•  The pre-deposit amount not exceeding 50% of the amount in dispute, in a case involving a disputed tax liability of not less than Rs. 25 Crores can be ordered in case an application is made by the department.

The appeal must be decided within the 1 year from date of the filing appeal.

3. Appeal to high court

The department or the aggrieved party is empowered to file an appeal against the order passed by the appellate tribunal. The appeal can be made to high court only on the question of law and not on the question of fact. Further,  an appeal to the high court can be made within 180 days, but the high court has the power to extend this time period it is satisfied that there was a sufficient cause for delay.

The main point to be noted is that no appeal can be made to the high court against the matters which relate to the disputes between two states or state and a center regarding the nature of supply or place of supply.

4. Appeal to Supreme Court

The Supreme Court can entertain an application on its own motion or through an application made by the aggrieved party. Whereas, a direct appeal shall lie to the Supreme Court where the matters relate to the disputes between two states or state and a center regarding the nature of supply or place of supply.

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How to file an Appeal under GST?

2017-08-01