Section 107 of CGST Act

Appeals to Appellate Authority

 

• Enforced w.e.f. 1-7-2017.
• See also –
• Rule 89(2) of the CGST Rules, 2017;
• Rule 108 of the CGST Rules, 2017;
• Rule 109 of the CGST Rules, 2017;
• Rule 109A of the CGST Rules, 2017;
• Rule 109C of the CGST Rules, 2017; and
• Rule 113 of the CGST Rules, 2017; and
• Form Nos. GST RFD- 01, RFD- 01A and APL- 01 to APL- 04 of the CGST Rules, 2017.

 

Section 107 (1)

 

Any person aggrieved by any decision or order passed under this Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act by an adjudicating authority may appeal to such Appellate Authority as may be prescribed within three months from the date on which the said decision or order is communicated to such person.

 

Section 107 (2)

 

The Commissioner may, on his own motion, or upon request from the Commissioner of State tax or the Commissioner of Union territory tax, call for and examine the record of any proceedings in which an adjudicating authority has passed any decision or order under this Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, for the purpose of satisfying himself as to the legality or propriety of the said decision or order and may, by order, direct any officer subordinate to him to apply to the Appellate Authority within six months from the date of communication of the said decision or order for the determination of such points arising out of the said decision or order as may be specified by the Commissioner in his order.

 

 

Section 107 (3)

 

Where, in pursuance of an order under sub-section (2), the authorised officer makes an application to the Appellate Authority, such application shall be dealt with by the Appellate Authority as if it were an appeal made against the decision or order of the adjudicating authority and such authorised officer were an appellant and the provisions of this Act relating to appeals shall apply to such application.

 

Section 107 (4)

 

The Appellate Authority may, if he is satisfied that the appellant was prevented by sufficient cause from presenting the appeal within the aforesaid period of three months or six months, as the case may be, allow it to be presented within a further period of one month.

 

Section 107 (5)

 

Every appeal under this section shall be in such form and shall be verified in such manner as may be prescribed.

 

Section 107 (6)

 

No appeal shall be filed under sub-section (1), unless the appellant has paid—

 

(a) in full, such part of the amount of tax, interest, fine, fee and penalty arising from the impugned order, as is admitted by him; and  

 

(b) a sum equal to ten percent of the remaining amount of tax in dispute arising from the said order, subject to a maximum of twenty-five Twenty crore rupees, in relation to which the appeal has been filed.

 

[Inserted by The Central Goods and Services Tax (Amendment) Act, 2018–w.e.f. 01-02-2019].

 

[Words “Twenty-five” substituted by the Finance (No. 2) Act, 2024, w.e.f. 1-11-2024].

 

Provided that no appeal shall be filed against an order under sub- section (3) of section 129, unless a sum equal to 25% of the penalty has been paid by the appellant.

 

[Inserted by the Finance Act, 2021, w.e.f. 1-1-2022]

 

Section 107 (7)

 

Where the appellant has paid the amount under sub-section (6), the recovery proceedings for the balance amount shall be deemed to be stayed.

 

Section 107 (8)

 

The Appellate Authority shall give an opportunity to the appellant of being heard.

 

Section 107 (9)

 

The Appellate Authority may, if sufficient cause is shown at any stage of hearing of an appeal, grant time to the parties or any of them and adjourn the hearing of the appeal for reasons to be recorded in writing:

 

Provided that no such adjournment shall be granted more than three times to a party during hearing of the appeal.

 

Section 107 (10)

 

The Appellate Authority may, at the time of hearing of an appeal, allow an appellant to add any ground of appeal not specified in the grounds of appeal, if it is satisfied that the omission of that ground from the grounds of appeal was not wilful or unreasonable.

 

Section 107 (11)

 

The Appellate Authority shall, after making such further inquiry as may be necessary, pass such order, as it thinks just and proper, confirming, modifying or annulling the decision or order appealed against but shall not refer the case back to the adjudicating authority that passed the said decision or order:

 

Provided that an order enhancing any fee or penalty or fine in lieu of confiscation or confiscating goods of greater value or reducing the amount of refund or input tax credit shall not be passed unless the appellant has been given a reasonable opportunity of showing cause against the proposed order:

 

Provided further that where the Appellate Authority is of the opinion that any tax has not been paid or short-paid or erroneously refunded, or where input tax credit has been wrongly availed or utilised, no order requiring the appellant to pay such tax or input tax credit shall be passed unless the appellant is given notice to show cause against the proposed order and the order is passed within the time limit specified under section 73 or section 74 or section 74A.

 

[Inserted by the Finance (No. 2) Act, 2024, w.e.f. 1-11-2024].

 

Section 107 (12)

 

The order of the Appellate Authority disposing of the appeal shall be in writing and shall state the points for determination, the decision thereon and the reasons for such decision.

 

Section 107 (13)

 

The Appellate Authority shall, where it is possible to do so, hear and decide every appeal within a period of one year from the date on which it is filed:

 

Provided that where the issuance of order is stayed by an order of a court or Tribunal, the period of such stay shall be excluded in computing the period of one year.

 

Section 107 (14)

 

On disposal of the appeal, the Appellate Authority shall communicate the order passed by it to the appellant, respondent and to the adjudicating authority.

 

Section 107 (15)

 

A copy of the order passed by the Appellate Authority shall also be sent to the jurisdictional Commissioner or the authority designated by him in this behalf and the jurisdictional Commissioner of State tax or Commissioner of Union Territory Tax or an authority designated by him in this behalf.

 

Section 107 (16)

 

Every order passed under this section shall, subject to the provisions of section 108 or section 113 or section 117 or section 118 be final and binding on the parties.