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

Under the procedure for appeals to be heard by a single Member Bench before the Appellate Tribunal, Vindhya Steels has an appeal against an order covering two tax periods. Tax involved is Rs 30 lakh for one period and Rs 28 lakh for the other, and the appeal involves no question of law. A Bench of a Technical and a Judicial Member has earlier decided the same issue for Vindhya Steels in a different tax period in the same State. Which statement is correct?

The Rs 50 lakh test is applied on the cumulative amount across all issues and periods, here Rs 58 lakh, and because the same issue was earlier decided by a Technical and Judicial Member Bench, the appeal must be heard by such a Bench, not a single Member.

  1. AThe appeal can go to a single Member Bench because the amount in each period is below Rs 50 lakh
  2. BThe amounts are reckoned period by period, so the single Member Bench may hear it
  3. CThe cumulative amount of Rs 58 lakh across all periods is reckoned for the Rs 50 lakh test, and the earlier decision by a Technical and Judicial Member Bench also requires the appeal to be heard by such a BenchCorrect
  4. DA single Member Bench must hear it as no question of law is involved, regardless of earlier decisions

Explanation

The rule requires the cumulative tax, input tax credit, fine, fee or penalty to be determined with reference to all issues and all tax periods covered in the order appealed against, so 30 + 28 = Rs 58 lakh, not per period. Further, where the same issue for the same taxable person in the State, for the same or a different period, was already heard by a Bench of a Technical Member and a Judicial Member, the appeal shall be heard by such a Bench. Hence the single Member Bench route is unavailable.

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