The Central Government has given a great relief to the taxpayers who could not file an appeal against the orders, passed on or before the 31st day of March, 2023 under Section 73 or 74 of the CGST Act (hereinafter referred to as the said order), within the time period stipulated under sub-section (1) read with sub-section (4) of Section 107 ibid. The government has notified an Amnesty Scheme, vide its Notification No. 53/2023–CENTRAL TAX dated 2nd November, 2023, extending time limit upto 31st January, 2024 for filing an appeal against the said orders, subject to curtained conditions specified therein.
Understanding Adjudication Orders:
Adjudication Orders under Section 73 of the CGST Act, 2017 are passed for determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason other than fraud or any wilful-misstatement or suppression of facts. Such Orders deal with adjudication of such cases or show cause notices that do not allege fraud, any wilful misstatement or suppression of facts on the part of the taxpayers. However, Section 74 deals with the adjudication orders for determination of tax under those cases where taxpayers are alleged of fraud, wilful statement or suppression of facts.
Appeal Period under GST:
An appeal against the said orders, passed under Section 73 or Section 74 of the CGST Act, may be filed under Section 107 ibid which provides that any person aggrieved by any adjudication order passed under the GST Acts may appeal within three months from the date of communication of said orders. Section 107(4) provides that the Appellate Authority may allow a further period of one month, if he is satisfied that the appellant was prevented by sufficient cause from presenting the appeal within the aforesaid period of three months. Hence, we see that before issuance of the aforesaid Amnesty Scheme Notification dated 2nd November, 2023, an appeal against any order passed under Section 73 or Section 74 of the CGST Act could be filed by an aggrieved taxpayer, under Section 107(1) ibid, within three months from the date of communication of the said orders. However, in terms of Section 107(4) ibid, the Appellate Authority had a discretionary power to allow one more month to the taxpayers for filing such appeals.
The Amnesty Scheme – A Second Chance:
Now, by virtue of the aforesaid Notification No. 53/2023– CENTRAL TAX dated 2nd November, 2023, the Taxpayers, who could not file an appeal for some technical or administrative reasons or whose appeals were previously rejected as time barred in terms of Section 107 of the CGST Act, 2017, can file appeal till 31st January, 2024, subject to conditions that:
(i) The said Orders, against which appeal is to be filed, must have been passed on or before 31st March, 2023, under Section 73 or Section 74 of the CGST Act, 2017; and
(ii) Taxable person shall file an appeal in FORM GST APL-0, in accordance with Section 107(1) of the act, on or before 31st January, 2024;
(iii) Extended time limit under this Notification also available for the Appeals pending before Appellate Authority, wherein:
(a) Appellant has paid in full or such part of tax, interest, fine and penalty as admitted by him; or
(b) 12.5% of the disputed tax amount, subject to maximum of 25 crores rupees, is paid, out of which at least 20% should have been paid from Electronic Cash Ledger
(iv) No refund, in excess of the amount as stated at (ii) above, shall be granted till disposal of appeal
(v) Appeals, not involving any demand of tax, are not eligible for this amnesty scheme.
Conclusion:
The GST Amnesty Scheme 2023 provides a second opportunity for taxpayers to file appeals against orders issued under Section 73 or Section 74 of the CGST Act. By extending the appeal period until January 31, 2024, the government aims to offer relief to those who missed the initial deadline. However, specific conditions must be met, including the timely submission of appeals and adherence to the stipulated payment terms. This scheme serves as a vital step in ensuring a fair and accessible appeals process for taxpayers.
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