SECTION 82: FIRST APPEALS TO FIRST APPELLATE AUTHORITY-PART-I

GST Update 27.02.2016

GST DAILY DOSE OF UPDATION:-

SECTION 82: FIRST APPEALS TO FIRST APPELLATE AUTHORITY-PART-I:-

Any person aggrieved by any decision or order passed under this Act by an adjudicating may appeal to the First Appellate Authority. Furthermore, the Commissioner of GST may, of his own motion, call for and examine the record of any proceeding in which an adjudicating authority has passed any decision or order under this Act, for the purpose of satisfy himself as to the legality or propriety of the said decision or order and may, by order direct any GST officer subordinate to him to apply to the first appellate authority for the determination of such points arising out of the said decision or order as may be specified by the Commissioner of GST in his order.

Every appeal under this section shall be filed within three months from the date on which the decision or order sought to be appealed against is communicated to the Commissioner of GST, or as the case may be, the other party preferring the appeal.

Provided that the first appellate authority may, if he is satisfied that the appellant was prevented by sufficient cause from presenting the appeal within the aforesaid period of three months, allow it to be presented within a further period of one month.

No appeal shall be filed unless the appellant has deposited an amount of ten per cent of the amount in dispute in pursuance of the decision or order sought to be appealed against.

Provided that nothing in this sub-section shall effect the right of the departmental authorities to apply to the first appellate authority for ordering a higher amount of pre-deposit in a case which is considered by the Commissioner of GST to be a ‘serious case’.

Explanation- For the purpose of this proviso, the expression ‘serious case’ shall mean a case involving disputed tax liability of not less than Rs. 25 Crores and where the Commissioner of GST is of the opinion (for reasons to be recorded in writing) that the department has a very good case against the taxpayer.

As per the provisions prevalent in force, the time limit for filing appeal to the Commissioner Appeals is 2 months from the date of communication of the order appealed against with the power to condone the delay upto further period of one month. However, the time limit to file appeal to Commissioner Appeals in the proposed GST regime has been increased to 3 months from the date of communication of order with power to condone the delay upto further period of one month. This is appreciable but the power to condone delay should not be restricted to one month. The Commissioner Appeals should also have power to condone delay of unlimited period in reasonable cases as is available with Tribunals because at times, even meritorious cases have to face the fate of limitation.

The provision of mandatory pre-deposit is imported in the GST regime too but the quantum has been increased from present 7.5% to 10%. Moreover, the ceiling of maximum pre-deposit of Rs. 10 Crores has been removed and rather provisions have been made for insisting higher pre-deposit by the revenue department in serious cases. The definition of serious cases is involving disputed tax liability of Rs. 25 Crores or more. In our opinion, when the provisions for insisting higher pre-deposit are being incorporated then the provisions for waiving pre-deposit in exceptional cases should also be formulated as it is commonly observed that frivolous cases are being booked against assessees against the law declared by Supreme Court.

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GST Update 27.02.2016

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