Procedure of GST Appeals to First Appellate Authority

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.

Latest Updates

26th December 2022
Changes are made to Rules 1083) and 109 of the CGST Rules through CGST notification no. 26/2022. The Rule 108(3) to determine the date of filing appeal is revised. The Rule 109 that lays down manner of filing appeal before the appellate tribunal is also revised.

Appeal to First Appellate Authority

Who can appeal to First Appellate Authority?

A person/taxpayer unhappy with the order passed by an adjudicating can appeal within 3 months (extendable up to 1 month) from the date of the order in form APL-01. It must also be accompanied by grounds of appeal and verification form duly signed by the appellant. Further, the order against which appeal is made must be uploaded on the GST portal and acknowledgement in APL-02 is issued by the authority with the appeal number. Here, the date of appeal is date of issue of provisional acknowledgement by appellate authority.

On the other hand, suppose the appellant does not submit the order copy against which appeal is preferred, then they must provide self-certified copy of order within 7 days from APL-01 filing date. Form APL-02 is issued by the authority with the appeal number. Here too, the appeal date is date of issuing the provisional acknowledgement. In case the self-certified copy of order is not submitted within 7 days of filing APL-01, date of filing appeal shall be such document submission date.

The authority issues a provisional acknowledgement immediately upon filing the application. However, the appeal is treated as filed only with the final acknowledgement having the appeal number.

Can the Commissioner appeal to the First Appellate Authority?

Yes, appeal can be filed under Section 107(2) read with Rule 109. The Commission can appeal before the appellate authority within 6 months from the date of order in form APL-03. The date of appeal shall be determined in the same manner as laid down in Rule 108 above. 

The officer will examine the record of the order for its legality or propriety based on the appellant’s motion or on a request from the Commissioner. 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. Appellate Authority will issue a final acknowledgement, along with appeal number in form APL-02.

Is adjournment allowed?

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

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.

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.

Negative impact of the order 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. Further, with respect to orders received on detention and seizure of goods and conveyance, 25% of penalty needs to be paid for making an application of appeals under section 107 of the CGST Act. 

Time limit for the decision

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

Revisional Authority

The Revisional Authority 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.

When is revision not allowed?

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. Such order must be passed 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.

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