Chapter 18

Section 107: Appeals to Appellate Authority

Any person aggrieved by an order under this Act or State/Union Territory GST Act by an adjudicating authority may appeal to the prescribed Appellate Authority within three months from communication of the order.

The Commissioner may, on his own motion or on request from State/UT Commissioners, examine any order and direct a subordinate officer to apply to the Appellate Authority within six months for determination of specified points.

Applications under such directions are treated as appeals.

The Appellate Authority may allow appeal beyond the prescribed period for sufficient cause, up to one additional month.

Appeals must be in prescribed form, and the appellant must pay:

• The admitted part of tax, interest, fine, fee, and penalty in full
• 10% of the disputed tax (max ₹25 crore), except for certain penalty cases under section 129(3) (25% of penalty)

Payment of this amount stays recovery proceedings.

The Appellate Authority must give the appellant an opportunity to be heard, allow adjournments (max 3 times per party), and permit additional grounds if omission was not willful.

It can confirm, modify, or annul the order but cannot refer back to the original adjudicating authority. Orders affecting fees, penalties, refunds, or input tax credit require a reasonable opportunity to show cause.

The order must be in writing, stating points for determination, decisions, and reasons. Appeals should ideally be disposed of within one year, excluding court stay periods.

Orders are communicated to the appellant, respondent, adjudicating authority, and jurisdictional Commissioner. Orders are final and binding, subject to sections 108, 113, 117, or 118.

Section 108: Powers of Revisional Authority

The Revisional Authority can, on its own or on information/request, examine any order of a subordinate officer. If an order is found erroneous, prejudicial to revenue, illegal, or improper, the authority may stay it and pass an order enhancing, modifying, or annulling it after giving the concerned person an opportunity of being heard.

Limitations:

• No revision if the order is under appeal, period of appeal has not expired, more than three years have passed, or if the order was already revised.
• Exceptions exist for points not raised in appeal within specified periods.

Orders in revision are final and binding. Periods spent awaiting decisions of Higher Appellate Authorities or court stays are excluded in computing limitations.

Section 109: Constitution of Appellate Tribunal

The Government constitutes the GST Appellate Tribunal for appeals against Appellate Authority or Revisional Authority orders.

• Powers are exercised by National Bench, Regional Benches, State Bench, and Area Benches.
• National Bench (New Delhi) consists of President, one Technical Member (Centre), one Technical Member (State).
• Regional Benches consist of Judicial Member, Technical Member (Centre), Technical Member (State).
• State and Area Benches exercise powers for cases other than “place of supply” issues.
• Benches may sit with fewer members under prescribed conditions.
• Decisions of Benches are by majority; in case of tie, points are referred to other Members.

Transfers of Members are possible for administrative convenience. Vacancies do not invalidate proceedings.

Section 110: President and Members of Appellate Tribunal

Qualifications:

• President: Judge of Supreme Court, Chief Justice, or High Court Judge ≥5 years
• Judicial Member: High Court Judge, qualified District Judge, or senior Indian Legal Service officer
• Technical Member (Centre): Group A officer of Indian Revenue Service, 15 years of service
• Technical Member (State): State officer, Additional Commissioner rank, 3 years experience in finance/taxation

Appointments are by Government in consultation with Chief Justice (for President and Judicial Members). Terms:

• President: 3 years or until 70, eligible for reappointment
• Judicial Members/State President: 3 years or until 65
• Technical Members: 5 years or until 65

Members can resign, and governments can remove members on grounds of insolvency, conviction, incapacity, misconduct, or abuse of position after due process. Suspension is also provided under certain circumstances. Members cannot represent before the Tribunal after leaving office.

Section 111: Procedure before Appellate Tribunal

• Tribunal is not bound by Civil Procedure Code but follows natural justice
• Powers similar to civil courts: summon witnesses, require documents, receive affidavits, issue commissions, decide ex parte, etc.
• Orders can be enforced like court decrees
• Proceedings are judicial and deemed civil court for relevant provisions

Section 112: Appeals to Appellate Tribunal

Any person aggrieved by an order under sections 107 or 108 can appeal within 3 months. Tribunal may refuse appeals where tax/credit or penalty/fine ≤ ₹50,000.

Commissioner may direct subordinate officer to apply to Tribunal for specified points within six months.

Cross-objections can be filed within 45 days. Tribunal can admit late appeals if sufficient cause exists.

Appeals must be in prescribed form and verified, with payment of 20% of disputed tax (max ₹50 crore). Payment stays recovery proceedings. Applications for rectification or restoration require prescribed fees.

Section 113: Orders of Appellate Tribunal

Tribunal can confirm, modify, annul, or refer cases back for fresh adjudication with directions. Adjournments allowed up to 3 times per party. Apparent errors can be rectified within 3 months with notice to the other party if liability is affected.

Orders should ideally be disposed of within one year and communicated to all concerned authorities. Tribunal orders are final, subject to sections 117 or 118.

Section 114: Financial and administrative powers of President

President exercises prescribed financial and administrative powers over National and Regional Benches and can delegate powers under supervision.

Section 115: Interest on refund

Amounts paid for appeal admission, if refunded, attract interest at prescribed rates from payment date to refund date.

Section 116: Appearance by authorised representative

• Persons may appear through authorised representatives: relative, regular employee, advocate, CA, CS, cost accountant, retired commercial tax officer (after 1 year of retirement), or GST practitioner.
• Disqualifications: dismissed from government service, convicted of related offence, found guilty of misconduct, insolvent.

Section 117: Appeal to High Court

Appeals from State/Area Benches can be filed within 180 days if a substantial question of law arises. High Court hears the appeal on the formulated question of law. Judgment must contain grounds and may award costs. Bench of ≥2 judges hears appeals. Effect of judgment is given through certified copy. Civil Procedure Code provisions apply as far as possible.

Section 118: Appeal to Supreme Court

Appeals lie from:

• National/Regional Benches of Appellate Tribunal
• High Court judgments certified fit for appeal

Civil Procedure Code provisions for Supreme Court appeals apply.

Section 119: Sums due to be paid notwithstanding appeal

Amounts due under Tribunal or High Court orders are payable despite pending appeals.

Section 120: Appeal not to be filed in certain cases

Board may fix monetary limits for filing appeals. Non-filing in one case does not preclude filing in similar cases. Non-filing cannot be treated as acquiescence.

Section 121: Non-appealable decisions and orders

No appeal lies against:

• Transfer of proceedings orders
• Seizure or retention of accounts/documents
• Prosecution sanctions
• Orders under section 80