Appeal Under GST- Appeal to Appellate Authority

PREFACE: 

Any taxpayer or an unregistered person aggrieved by any decision or order passed against him by an adjudicating authority, may appeal to the Appellate Authority, within three months from the date on which the said decision or order is communicated to such person. Now orders are coming from the GST department in large number hence the Appeal and the procedure of filing the appeal is a very important subject.

Here we are studying the whole provisions of filing the appeal to GST appellate authority and procedure of filing of an appeal. The provisions are given in Section 107 of the CGST Act, and rules of the same are given in Rule 108 and 109 of the CGST rules 2017. The relevant Forms are APL-01,

The appellate hierarchy of the Appeals under GST Act, is as under: –

Here we are discussing the Appeal to the First Appellate Authority against the order of the Adjudication officer and provisions are given in Section 107 of the CGST Act, 2017.

Let us have a Look at some important Point related to the GST appeal in the form of Q&A.

Q.1 What is an appeal and when appeal can be filed under GST?

Ans. Appeal means a request to reconsider a decision or order made if one is not agreed with any order or decision passed under the GST Act, by an adjudicating authority, may appeal against such order to the appellate authority within 3 Months from the date of communication to such person.

Here it should be noted that in the normal appeal can be filed within 3 Months from the Date of communication of the order and in abnormal circumstances the time can be extended by one more month as clarified in the answer of Question No.2 

Q.2 What happened if one failed to file appeal within 3 Months from the communication of the order?

Ans. The appellate authority may give further one month time for presenting the appeal if he is satisfied that the appellant is prevented by sufficient cause from presenting the appeal within 3 Months. So in normal circumstances appeal should be filed within 3 Months from the date of communication but if there is any reason for delay then this 3 Months can be extended for one more month by the Appellate authority.

Q.3 What is to be paid before filing the appeal by the appellant?

Ans. The appellate authority may give further one month time for presenting the appeal if he is satisfied that the appellant is prevented by sufficient cause from presenting the appeal within 3 Months. So in normal circumstances appeal should be filed within 3 Months from the date of communication but if there is any reason for delay then this 3 Months can be extended for one more month by the Appellate authority. Here the appellate has to pay 100% amount of Tax, Penalty and Interest which he has accepted as undisputed. It means that the amount which is not subject matter of dispute under appeal has to be paid in full.

Now the balance left is the disputed amount of Tax , Interest and Penalty. Here 10% of the disputed tax has to be deposited for filing of an appeal and nothing out of the disputed Interest and Penalty has to be paid. Let us summaries this provision of deposit of tax etc. in the following manner: –

(a). Full amount of tax, interest and penalty arising from the order which is not disputed by the appellant.

(b). 10% of the disputed amount of Tax subject to maximum of Rs. Twenty-five crores.

Here please note that with respect to disputed amount only 10% of amount of Tax (Not penalty and Interest) is required to be deposited before filing of appeal.

Q.4 Is this 10% amount of disputed demand is to be deposited with filing of appeal is universal or there are some exceptions of this provision

Ans. Yes, in almost all the cases 10% amount of disputed amount of tax is to be deposited with filing of appeal barring a single exception. If the order is passed under section 129(3) then this deposit amount shall be 25% of the penalty.

Here we should know what type of demands of penalty are being created under section 129(3). Section 129 is related to Detention, Seizure and release of goods and conveyance in transit and if a demand created under section 129(3) then the appellant has to pay 25% of penalty for filing of the appeal.

Let us have a look at section 129(3): –

The proper officer detaining or seizing goods or conveyance shall issue a notice within 7 days of such detention or seizer specifying the penalty payable, and thereafter, pass an order within a period of 7 days from the date of service of such notice, for payment of Penalty under clause (a) or (b) of subsection (1).

Amount to be out of Disputed Amount of Tax, Penalty, and Interest (Other than Penalty u/s 129 (3)

IN CASE OF ORDER U/S 129(3)

Please note that what is not disputed means which is agreed to paid the same has to be paid 100% for filing of demand. The whole concept has been explained in details with example.

Q.5 What is the procedure of Stay of demand against which appeal is filed?

Ans. The GST law has a very good and straight forward provision of stay of recovery of demand. Once the amount as mentioned mostly as 10% of the disputed amount is deposited then the recovery proceedings shall be deemed to be stayed. It is automatic stay and no need to apply separately for stay of demand.

Q.6 Is there any provision of submitting the Certified copy of the Order after filing of appeal?

Ans. Not in all the cases, till Dec. 2022 it was applicable for all the orders but after that substantial changes have been made in rule 108 and at present the provision of the producing the Certified copy of the order is as under: –

Type of order	Requirement of producing the certified copy of order	Date of presentation of appeal
Order uploaded on the GST Portal	No	Date of provisional Acknowledgement is the date of presentation of appeal.
Order not uploaded on the GST Portal	Yes	1.If the copy of certified order is produced within 7 days from the filing of appeal, then the date of filing of appeal shall be the same when appeal was originally filed. 2. If the certified copy of the order is not produced within 7 days from the date of filing of appeal, then the date of producing the certified copy of appeal shall be deemed to be considered as date of filing of appeal.

Here we are reproducing herewith the Newly amended rule 108 in this respect

Here it should be noted that the order, against which appeal is being filed by the dealer is uploaded on the GST portal then there is no need to furnish the certified the orders to the assessing authority.

In case of Order which are uploaded on GST portal there is no requirement of producing the certified copy to the Appellate authority is a welcome change and this has been made recently by amending the GST rules on 26^th Dec. 2022. The copy of the new rules has been reproduced above.

Q.8 How the hearing of the appeal is started in GST?

Ans. The appellate authority shall give an opportunity to the appellant of being heard and in that case, appellant can put up his all arguments in favor of his appeal.

Q.9 Is there any possibility of getting an adjournment in case of hearing of an appeal?

Ans. Yes, Appellate authority can adjourn the case and give new date by writing the reasons of doing so. The number of adjournments in GST is limited and as per section 107(9) not more than 3 adjournments can be given.  It is not the right of the dealer to seek 3 adjournments because for each adjournment sufficient cause to be shown but it should be noted that in any case not more than 3 adjournments can be taken.

Q10. One can present more grounds of appeal at the time of hearing of appeal?

Ans. Yes, Appellate authority can permit to present any other ground of appeal at the time of hearing of appeal if it is satisfied that the omission of not giving the ground is not willful or unreasonable.

HOW TO FILE AN APPEAL ON GST PORTAL

Now after knowing the provision of the Filing of Appeal to first authority, Let us has a look at how the appeal is filed on GST Portal, which is very important part of this write up: –

What is to be prepared before filing of appeal: –

1. APL-01 with grounds of appeal. Please note that your APL-01 will start from point No. 9 of this form and you have to fill only 9 points of this Form which includes the Grounds of Appeal, Prayer, whether appeal is within time and it is not within time then what are the reasons.

Why this form is starting from point No.9 and at first sight it may look strange. The other information in this form shall be auto populated since these includes the Name, Address, GSTN etc.

Let us have a Look at APL-01 at the next page.

2. The Documents which you want to upload with the Appeal.

3. Your must have the required amount in the credit and cash ledger to be deposited as required to be paid before filing of appeal.

NOW THE PROCEDURE OF FILING OF APPEAL

1. Log in to the Account of the Dealer

2. Go to Dash Board

3. Go to Services

4. Go to User Service

5. Go to My Application

6. Go to Appeal to Appellate authority.

7. Go to New Application

8. Write Your Order Number

9. Upload APL-01 and Supported Documents

10. Fill the Disputed Amount

11. Deposit the amount required to be paid as per requirement of the Law.

12. File the Appeal.

Let us have a look at the procedure how to calculate the amount to be deposited before filing of appeal on Next Page: –

DETIALS OF DEAMAND IN ORDER
PARTICULARS	SGST	CGST	INTEREST	PENALTY
DEMAND	10000.00	10000.00	14000.00	5000.00
ADMITTED DEMAND	5000.00	5000.00	7000.00	2500.00
DISPUTED AMOUNT	5000.00	5000.00	7000.00	2500.00

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AMOUNT TO BE DEPOSITED BY THE APPELLANT FOR FILING OF APPEAL
PARTICULARS	SGST	CGST	INTEREST	PENALTY
100% OF ADMITTED DEMAND	5000.00	5000.00	7000.00	2500.00
10%DISPUTED AMOUNT OF TAX	500.00	500.00	0.00	0.00
TOTAL AMOUNT TO BE DEPOSITED	5500.00	5500.00	7000.00	7000.00

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IF WHOLE THE AMOUNT IS DISPUTED THEN THE AMOUNT TO BE DEPOSITED SHALL BE AS UNDER
PARTICULARS	SGST	CGST	INTEREST	PENALTY
DEMAND	10000.00	10000.00	14000.00	5000.00
ADMITTED DEAMND	0.00	0.00	0.00	0.00
DISPUTED AMOUNT	10000.00	10000.00	14000.00	5000.00
AMOUNT TO BE DEPOSITED BY THE APPELLANT	1000.00	1000.00	0.00	0.00

This is the whole process and now the whole process is being shown through actual screen shots taken from GST Porta

1. DASH BOARD > SERVICE

SERVICE < MY APPLICATION

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MY APPLICATION > APPEAL TO APPEAL AUTHORITY< NEW APPLICATION

ASSESSMENT – DEMAND ORDER AND NUMBER

GO TO DISPUTED AMOUNT – DEPOSIT THE SAME AND UPLOAD APL-01 AND SUPPORTING DOCUMENTS

UPLOADED APL-01 AND SUPPORTING DOCUMENTS

SELECT THE REASON OF APPEAL

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A

DEPOSIT THE AMOUNT FOR FILING OF APPEAL

PROCEED TO FILE