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

Ganga Steels Ltd faces a single order covering two issues. Issue A relates to FY 2022-23 with tax of Rs 30 lakh and input tax credit disputed of Rs 10 lakh. Issue B relates to FY 2023-24 with tax of Rs 8 lakh and penalty of Rs 4 lakh. The question is whether a single Member Bench may hear its Tribunal appeal; no question of law is involved. Under the Rules provided, how is the fifty lakh rupee limit in section 109(8) reckoned?

The limit is reckoned cumulatively across all issues and all tax periods in the order, covering tax, input tax credit, fine, fee or penalty. Here 30 + 10 + 8 + 4 equals Rs 52 lakh, which exceeds fifty lakh, so separate-issue or tax-only tests are wrong.

  1. AEach issue and each tax period is tested separately; Rs 30 lakh is the highest, so it is below fifty lakh
  2. BOnly tax is counted, giving Rs 38 lakh, which is below fifty lakh
  3. CCumulative tax, ITC, and fine, fee or penalty across all issues and periods in the order, giving Rs 52 lakh, which exceeds fifty lakhCorrect
  4. DOnly the latest tax period is considered, giving Rs 12 lakh

Explanation

The Rules state the cumulative tax or input tax credit involved, or amount of fine, fee or penalty, is determined across all issues and all tax periods in the order. Sum: 30 + 10 + 8 + 4 = 52 lakh. Testing issues separately or counting only tax ignores this rule.

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