Procedure of GST Appeals to First Appellate Authority

Updated on 5th April 2017

In our previous article, we discussed the basics of any appeal under GST. In this article, we will continue to understand Appeals to First Appellate Authority through some commonly asked questions.

Who can appeal to First Appellate Authority?

A person unhappy with the order passed by an adjudicating authority (as defined by the GST Model Law) can appeal within 3 months (extendable up to 1 month) from the date of the order.

Can the Commissioner appeal to the First Appellate Authority?

Yes. He can examine the record of the order for its legality or propriety based on the appellant’s motion or on a request from the Commissioner of SGST/CGST. The Commissioner can then direct his subordinate officer to apply to the First Appellate Authority within six months from the date of the order.
If the authorized officer makes an application to the First Appellate Authority then such application will be treated as an appeal made against the order.

Is adjournment allowed?

The First Appellate Authority may adjourn the hearing of the appeal with reasons recorded in writing, if there is sufficient cause.
Adjournment will be allowed only three times to a party during hearing of the appeal.

Will any additional grounds be allowed?

The First Appellate Authority can allow an appellant to go into any ground of appeal which was not earlier specified in the appeal only if he feels the omission was not willful.

The Decision of the First Appellate Authority 

The First Appellate Authority can confirm, modify or annul the decision but will not refer the case back to the authority.

Any order increasing any fee/penalty/fine or confiscating higher value goods or decreasing the refund or input tax credit will be passed only after a reasonable opportunity of showing cause.

Any order for payment of unpaid/short-paid tax or wrong refunds or input tax credit wrongly availed will be passed only after the appellant is given show cause notice

Time limit for the decision

The order is passed within the time limit specified under section 73 or 74,i.e., within three years from the due date for filing of annual return. For cases of fraud, it is extended upto 5 years.

The First Appellate Authority shall give decision in writing within a period of one year from the appeal filing date.

If the order is stayed by an order of a Court or Tribunal, the period of such stay shall be excluded in from the one year period.

Communication of the decision

The First Appellate Authority shall communicate the order passed to the appellant and to the adjudicating authority.

A copy of the order will also be sent to the jurisdictional Commissioners of CGST and SGST.

Can the Chief Commissioner or Commissioner revise the order?

The Chief Commissioner or Commissioner can on his own, or on request from the Commissioner of SGST/CGST, examine the records of any proceeding. He will examine the records if he considers that any decision by any subordinate officer is-

• Prejudicial to the interest of the revenue
• Illegal or
• Improper or
• Not taking into account certain (whether or not available at the time of issuance of the order) or
• An observation was made by the C&AG

If he thinks it is necessary, he can stay the order for a time period as he deems fit. The person concerned will be given an opportunity of being heard.

Chief Commissioner or Commissioner can enhance or modify or annul the order.

However, the Chief Commissioner or Commissioner will not revise the order if-

• the order was already under appeal
• 6 months have not passed from the date of order (i.e., there is time left for appeal)
• more than three years have passed after the date of order
• the order has already been taken for revision

The Chief Commissioner or Commissioner can pass an order on any point which has not been raised in any appeal before one year from the date of the appeal order or before three years.

If the order is stayed by the order of a Court or Tribunal, the period of the stay will be excluded.

If the aggrieved person is not happy with the decision of the First Appellate Authority, he can appeal to the National Appellate Tribunal and then to High Court and finally Supreme Court.