This article builds upon previous discussions regarding the fundamentals of GST appeals, focusing specifically on inquiries related to the First Appellate Authority.

Appealing to the First Appellate Authority

Eligibility for Appealing to the First Appellate Authority

A taxpayer or individual who disagrees with an adjudicating order can file an appeal using form APL-01 within three months from the order's date. This period may be extended by one additional month. The appeal must include the grounds for appeal and a signed verification form from the appellant. Additionally, the original order being appealed must be uploaded to the GST portal. The authority will then issue an acknowledgment in form APL-02, which includes the appeal number. The date of appeal is considered the date the provisional acknowledgment is issued by the appellate authority. The 53rd GST Council meeting proposed reducing the maximum pre-deposit amount for filing appeals before appellate authorities. This reduction is from Rs. 25 crore each under CGST and SGST/UTGST to Rs. 20 crore each under CGST and SGST/UTGST, respectively. If the appellant does not submit a copy of the order being appealed, a self-certified copy must be provided within seven days of filing APL-01. Form APL-02, containing the appeal number, is then issued by the authority. In this scenario, the appeal date is the date of issuing the provisional acknowledgment. However, if the self-certified copy is not submitted within seven days of filing APL-01, the appeal filing date will be considered the date of document submission. A provisional acknowledgment is issued immediately upon application, but the appeal is formally filed only once the final acknowledgment with the appeal number is received.

Can the Commissioner File an Appeal to the First Appellate Authority?

Yes, an appeal can be filed under Section 107(2) in conjunction with Rule 109. The Commissioner can file an appeal to the appellate authority within six months from the order's date using form APL-03. The determination of the appeal date follows the same procedure outlined in Rule 108. The officer will review the order's record to assess its legality or propriety, either at the appellant

’s request or upon the Commissioner's direction. The Commissioner may then instruct a subordinate officer to submit an application to the First Appellate Authority within six months of the order's date. If the authorized officer files such an application, it will be treated as an appeal against the order. The Appellate Authority will subsequently issue a final acknowledgment, along with the appeal number, in form APL-02.

Are Adjournments Permitted?

The First Appellate Authority may grant adjournments for the appeal hearing if there is sufficient justification. The reasons for adjournment must be documented in writing, and only three adjournments are allowed.

Can Additional Grounds Be Introduced?

The First Appellate Authority has the discretion to permit an appellant to introduce new grounds for appeal that were not initially specified, provided the omission was not deliberate.

Decision-Making by the First Appellate Authority

The First Appellate Authority can uphold, modify, or overturn a decision, but it cannot send the case back to the original authority for reconsideration. Orders that negatively impact the appellant, such as increasing fees, penalties, or fines, confiscating higher-value goods, or reducing refunds or input tax credit, can only be issued after the appellant has been given a reasonable opportunity to present their case. Similarly, any order requiring payment for unpaid/short-paid tax or wrongly claimed refunds or input tax credit will be issued only after a show-cause notice is provided to the appellant. For appeals concerning the detention and seizure of goods and conveyances, a 25% penalty must be paid when filing the appeal application under Section 107 of the CGST Act.

Time Limit for Decision Issuance

The order must be issued within one year from the appeal filing date. If a court or tribunal stays the order, the duration of such stay is excluded from this one-year period.

Communicating the Decision

The First Appellate Authority is responsible for notifying the appellant and the adjudicating authority of the order. Copies of the order will also be sent to the jurisdictional Commissioners of CGST and SGST.

Revisional Authority

The Revisional Authority can independently, or at the request of the Commissioner of SGST/CGST, review the records of any proceeding. This review occurs if the authority believes a decision by a subordinate officer is:

• Detrimental to revenue interests.
• Unlawful.
• Incorrect.
• Failed to consider specific information (whether or not available at the time of the original order).
• Based on an observation by the Comptroller and Auditor General (C&AG).

If deemed necessary, the authority can temporarily suspend the order for a suitable period. The affected individual will be granted an opportunity to be heard.

The Chief Commissioner or Commissioner has the power to increase, alter, or cancel the original order.

Instances Where Revision is Not Permitted

The Chief Commissioner or Commissioner will not revise an order if:

• The order is already subject to an appeal.
• Six months have not elapsed since the order's date (meaning there is still time for an appeal).
• More than three years have passed since the order's date.
• The order has previously been subjected to revision.

The Chief Commissioner or Commissioner can issue an order on any point not raised in an appeal. Such an order must be issued within one year from the date of the appeal order or within three years from the date of the original order. If a court or tribunal stays the order, the stay period will be excluded. If an aggrieved party is dissatisfied with the decision of the First Appellate Authority, they can further appeal to the National Appellate Tribunal and subsequently to the High Court and ultimately the Supreme Court.