GSTAT Dismisses Departmental Appeal Below ₹20 Lakh Monetary Threshold

Raghvendra Vikram Singh Vs Technomat Composheet PLTD (GSTAT Ghaziabad)

Summary: The present departmental appeal by the State Tax Department arose from an order passed in Appeal No. GST-AD090522035034G/185/22 (Year 2020-21, December 20), which had been filed under Section 74(9) of the UPGST Act, 2017. The respondent, M/s Technomat, is a registered dealer engaged in manufacturing activities. The dispute concerned IGST and a penalty of ₹88,074/- arising from the alleged violation of Rule 138 read with Section 68 of the Goods and Services Tax Act, 2017 in relation to movement of goods and the e-way bill requirement. The first appellate authority had allowed the appeal under Section 129(3) of the UPGST Act, 2017, and the State Tax Department carried the matter to the Tribunal. At the admission stage, the Tribunal considered whether the departmental appeal could be entertained on merits in light of the prescribed monetary threshold governing departmental appeals before GSTAT.

The Tribunal distinguished the existence of a statutory right of appeal from the maintainability of an appeal. Relying on Ganga Bai v. Vijay Kumar, (1974) 2 SCC 393 and Anant Mills Company Limited v. State of Gujarat, (1975) 2 SCC 175, it noted that the right of appeal is created by statute and may be exercised subject to statutory conditions. The Tribunal then examined Section 120 of the UPGST Act, 2017 and the monetary-limit framework stated to have been prescribed by the Commissioner, State Tax, Uttar Pradesh. Circular No. 2425008 dated 05.07.2024 prescribed, inter alia, a ₹20,00,000 monetary limit for departmental appeals before GSTAT, subject to specified exclusions and exceptions. The Tribunal also considered Circular No. 252/2026-27/State Tax dated 22.05.2026, which continued the litigation-management framework through monetary limits, review mechanisms and Zonal Law Committees.