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CA Final · Indirect Tax Laws · Appeals and Revision (GST)

An order appealed before the GST Appellate Tribunal covers two tax periods. The order involves tax of Rs 30 lakh for the first period and input tax credit of Rs 25 lakh for the second period, with no question of law. The same issue has not earlier been decided by a Bench of a Technical Member and a Judicial Member for this person. Under the rules reproduced on single Member Bench transfer and the fifty lakh rupee computation, which statement is correct?

The amounts are reckoned cumulatively across all issues and tax periods covered in the order, so tax of Rs 30 lakh plus input tax credit of Rs 25 lakh gives Rs 55 lakh. The fifty lakh rupee limit in section 109(8) is applied to this total, not to each period.

  1. AThe amounts for each tax period are tested separately, so each is below fifty lakh rupees and the single Member Bench threshold is not an issue
  2. BThe amounts are determined across all issues and all tax periods in the order, giving Rs 55 lakh, so the fifty lakh rupee limit in section 109(8) is considered on this cumulative figureCorrect
  3. COnly tax is counted, so Rs 30 lakh is considered and input tax credit is ignored
  4. DThe President must transfer the appeal to a single Member Bench because there is no question of law

Explanation

Rule 110A(4) says the cumulative tax or input tax credit, or fine, fee or penalty, is determined with reference to all issues and all tax periods in the order appealed against. So 30 + 25 = Rs 55 lakh, which is above fifty lakh rupees. Testing periods separately or counting only tax is wrong, and transfer is a discretionary power, not mandatory.

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