CA Final · Indirect Tax Laws

Appeals and Revision (GST): formula sheet

Full chapter guide

Key formulas

Powers of the Appellate Authority: Confirm, modify or annul the decision or order appealed against. It may NOT refer the case back to the adjudicating authority.; Remand is not available under GST. If a question says the Appellate Authority sent the case back, treat it as wrong in law.
Adjournments: Adjournment for sufficient cause. Maximum three adjournments to a party.; The limit applies to each party, so mention both sufficient cause and the cap of three.
Additional grounds: Allowed if the omission from the appeal was not wilful or unreasonable.; Without this condition, a new ground can be refused.
Additional evidence: Evidence other than that produced before the adjudicating authority is allowed only if (a) the adjudicating authority refused to admit evidence which ought to have been admitted, (b) the appellant was prevented by sufficient cause from producing it, or (c) the appellant was not given sufficient opportunity to adduce evidence relevant to any ground of appeal. Reasons must be recorded in writing, and the adjudicating authority must get an opportunity to examine it or cross-examine any witness.; Evidence that the appellant could have produced earlier, without any of these three reasons, is not admitted.
Enhancing fee, penalty, fine, confiscation or reducing refund or ITC: No order that enhances a fee or penalty, enhances a fine in lieu of confiscation, confiscates goods of greater value, or reduces a refund or input tax credit, unless the appellant has been given a show cause notice and a reasonable opportunity of being heard.; Natural justice applies even though the appellant filed the appeal. Do not add 'higher tax' to this list; fresh tax demand is a separate rule.
Fresh demand of tax short-paid, not paid, erroneously refunded or ITC wrongly availed: The Appellate Authority can demand such tax only if a show cause notice is issued within the time limit under section 73 or 74, as applicable.; It cannot sidestep limitation by acting on appeal.
Form of the order: Written order stating points for determination, decision and reasons. Summary of demand in FORM GST APL-04.; A bare order without reasons is defective.
Time target: Decide the appeal, where possible, within one year of filing.; Directory in nature. Missing it does not by itself invalidate the order.
Grounds for revision (all must be checked): Order of subordinate officer is erroneous in so far as prejudicial to revenue + (illegal or improper, or ignored material facts); Revision is a revenue-protection power. An order that is only unfavourable to the taxpayer does not qualify. A CAG observation is one circumstance showing the order is illegal, improper or ignores material facts. It is not an independent ground.
Bars on revision: No revision if: order has been subject to appeal (Sections 107, 112, 117, 118) and the point is decided in that appeal, OR appeal time not yet expired, OR more than 3 years from the order, OR order was itself passed in exercise of revisional powers; Proviso: revision is allowed on a point not raised and decided in such an appeal, before the later of 1 year from the appellate order or 3 years from the original order.
Powers of the revisional authority: May stay the order, make further inquiry, and then enhance, modify or annul the order; Stay is discretionary and for such period as he thinks fit. The authority must be a designated officer superior to the one who passed the order.
Procedure under Rule 109B: Notice → reply and hearing → reasoned order; Rule 109B only prescribes the notice and the order. The power and its limits come from Section 108. Natural justice is mandatory where the proposed order is prejudicial to the person.
Appeal vs revision: Appeal: by aggrieved person, within 3 months under Section 107 (extendable by 1 month). Revision: by department, only after the appeal time has expired and within 3 years from the order; Appeal corrects an error against the taxpayer. Revision corrects an error against revenue. The 3-year limit is an outer bar, not a general window, because the appeal time must also have expired.

Quick revision

First appeal lies to the Appellate Authority against an order of the adjudicating authority.
The time limit for the first appeal runs from the date the order is communicated to you, not the date it was passed.
The Appellate Authority can condone a limited delay beyond the normal period if sufficient cause is shown.
The first appeal needs the admitted tax, interest, fine, fee and penalty, plus a percentage of the disputed tax, subject to a cap.
Under section 107(11), the Appellate Authority may confirm, modify or annul the decision appealed against but shall not refer the case back to the adjudicating authority. Under section 113(1), the Appellate Tribunal may confirm, modify or annul the order appealed against, or refer the case back to the Appellate Authority, the Revisional Authority or the original adjudicating authority for a fresh order.
A demand cannot be increased without notice and a chance to be heard.
Revision is by a higher officer. It is barred where the order has been subject to an appeal under section 107 or section 112, or where the period for filing an appeal has not yet expired, subject to the further limits in section 108.
The Tribunal appeal needs a further pre-deposit on the disputed tax, with a cap.
Under section 117, an appeal lies to the High Court against an order of the State Bench or Area Bench of the Appellate Tribunal, if the High Court is satisfied that the case involves a substantial question of law. Under section 118, an appeal lies to the Supreme Court against (a) an order of the National Bench or Regional Benches of the Tribunal under section 109(5), which covers place of supply disputes, and (b) a judgment or order of the High Court in cases where the High Court certifies that the case is fit for appeal to the Supreme Court. So the path is not a single ladder in every case.
Some orders are not appealable, as listed in section 121, such as orders on seizure or retention of books, documents or things, and sanction of prosecution. Check the full list in the text of section 121 and do not add orders to it from memory.
A refund of pre-deposit follows if the appeal succeeds, with interest as the law provides.
The TRAN-1 declaration can be revised only within the notified window and as the rule allows.

Common mistakes

Saying the Appellate Authority can remand the case to the adjudicating authority. Fix: Memorise: confirm, modify or annul, and no reference back. If the lower order is defective, the Appellate Authority decides the matter itself.
Writing that the Appellate Authority can freely raise the demand or penalty because the appellant came to it. Fix: Keep two rules apart. Enhancing a penalty or fine, or cutting a refund or ITC, needs a show cause notice and a reasonable opportunity of hearing. A fresh tax demand needs a show cause notice within the time limit under section 73 or 74.
Treating revision as a remedy for the taxpayer Fix: Remember that revision is a departmental power to protect revenue. The taxpayer's remedy is appeal.
Allowing revision while the appeal period is still running Fix: Check both ends. The appeal time must have expired, and 3 years must not have passed.

Exam tips

In MCQs on powers, the option that mentions 'remand' or 'refer back to the adjudicating authority' is almost always the wrong one.
In descriptive answers, structure each part as provision, facts and conclusion. For orders, always list confirm, modify and annul, and then the no-remand limit.
When a case shows the Appellate Authority raising the liability, look for a missing show cause notice or a time-limit issue. That is the examiner's hook.
Write the content of the order as three items: points for determination, decision and reasons. It is an easy mark that many students skip.
Keep form numbers short. Mention APL-04 only as the summary of the demand after the order. Quote section 107(11) or rule 112 only where you are sure of it.
Write Section 108 and Rule 109B in the first line of your answer, then the facts and conclusion.
Always do the date calculation in numbers. Examiners reward it.
Questions often hide the bar in a fact, such as an appeal already decided or a lapsed 3-year period. Underline it.