GST APPEALS WHEN NOT TO BE FILED

[Dr. Sanjiv Agarwal]

Statutory provision on Appeals not to be filed in certain cases (Section 120)

(1) The Board may, on the recommendations of the Council, from time to time, issue orders or instructions or directions fixing such monetary limits, as it may deem fit, for the purposes of regulating the filing of appeal or application by the officer of the central tax under the provisions of this Chapter.

(2) Where, in pursuance of the orders or instructions or directions issued under sub-section (1), the officer of the central tax has not filed an appeal or application against any decision or order passed under the provisions of this Act, it shall not preclude such officer of the central tax from filing appeal or application in any other case involving the same or similar issues or questions of law.

(3) Notwithstanding the fact that no appeal or application has been filed by the officer of the central tax pursuant to the orders or instructions or directions issued under sub-section (1), no person, being a party in appeal or application shall contend that the officer of the central tax has acquiesced in the decision on the disputed issue by not filing an appeal or application.

(4) The Appellate Tribunal or court hearing such appeal or application shall have regard to the circumstances under which appeal or application was not filed by the officer of the central tax in pursuance of the orders or instructions or directions issued under sub-section (1).

This section provides that based on orders/instructions/directions issued by Central Board of Indirect Taxes (CBIC) file on the recommendation of GST Council in certain cases, appeals may not be required to be filed.

Gist of statutory provision

1. The Board may issue order or instructions or directions fixing monetary limits for the purpose of regulating the filing of appeal or application by Officer of central tax.
2. In where the Officer has not filed an appeal/application against any decision/order in view of such order/instruction/directions, it shall not preclude him from filing appeal/application in any other cases involving same/similar issue or question of law.
3. No party in appeal/application shall contend that the Officer has acquiesced (agreed/consented) in the decision on the disputed issue by not filing an appeal/application.
4. The Appellate Tribunal or court, as the case may be hearing such appeal/ application shall have regard to the circumstances under which appeal/ application was not filed by the Officer in pursuance of such order/ instructions/directions.

Monetary ceiling for filing appeals

In terms of section 120(1) of the CGST Act, 2017, it has been provided that the board or the state government may, on the recommendation of the council, from time to time, issue orders or instructions or directions fixing such monetary limits, as it may deem fit, for the purposes of regulating the filing of appeal or application by the officer.

Such monetary limits shall be fixed on the recommendations of GST council. In pre-GST regime also, CBIC had issued directions fixing the monetary limits below which appeals were not allowed to be filed.

Consequences of non-filing of appeal

Where appeal has not been filed against any decision or order passed under the Act because of monetary limits, it shall not preclude such officer from filing appeal or application in any other case involving the same or similar issues or questions of law.

As per section 120(3) of CGST Act, 2017, in such cases, no person, being a party in appeal or application shall contend that the officer has acquiesced in the decision on the disputed issue by not filing an appeal or application.

Precedential value

Non-filing of appeal by department owing to the monetary value does not have any precedential value. The Appellate Tribunal or court hearing such appeal or application shall have regard to the circumstances under which appeal or application was not filed by the officer of the central tax in pursuance of the orders or instructions or directions issued under sub-section (1).