GST: APPEALS BEFORE SUPREME COURT

[Dr. Sanjiv Agarwal]

Under Article 141 of the Constitution of India, a decision rendered by the Supreme Court is the law of land and binding on all courts and tribunals functioning in the Country.

Section 118 of the CGST Act, 2017 deals with the provision relating to appeals to the Supreme Court (SC). The law provides for appeals to the Supreme Court from any judgment or order passed by the High Court, in any case which, on its own motion or on an oral application made by or on behalf of the party aggrieved, immediately after passing of the judgment or order, the High Court certifies to be a fit one for appeal to the Supreme Court.

A (direct) appeal shall also lie to the Supreme Court from any orders passed by the Principal Bench of the Tribunal. It may be noted that the  Principal Bench of the Tribunal has jurisdiction to entertain appeal if the dispute or one of the issues in dispute involves place of supply.

The Finance Act, 2023 had amended section 118 of the CGST Act, 2017 to the following effect:

The expression ‘National Bench or Regional Bench’ has been substituted with ‘Principal Bench’. [Clause (a) of sub-section 1].

The aforesaid changes have been necessitated in view of the GST Council residing that there will be only principal bench of the Appellate Tribunal and the nomenclature of benches will be such that regional benches and area benches will not exist.

Appealable orders

According to section 118(1) of CGST Act, 2017, appeal to Supreme Court shall lie against:

• Order or judgment passed by the High Court in appeal made under sec 117, on its own motion or on an oral application made by or on behalf of the party aggrieved immediately after passing of the judgment or order and High Court certifies it to be fit for appeal to Supreme Court.
• Any order passed by the Principal Bench of appellate tribunal.
• The High Court must certify the Judgement /order to be fit one for appeal to the Supreme Court. When an appeal is reversed, or varied, the effect shall be given to the order of the Supreme Court on the question of law so formulated and delivered.
• The Supreme Court is empowered to frame any substantial question of law not formulated by any lower authority if it is satisfied that the case before it involves such question of law.

Cost of Appeal

The costs of the appeal shall be at the discretion of the Supreme Court.

Giving effect to judgment

According to section 118(3) of the CGST Act, 2017, where the judgment of the High Court is varied or reversed in the appeal, effect shall be given to the order of the Supreme Court in the manner provided (on basis of certified copy) in section 117 in the case of a judgment of the High Court.

Applicable Rule

Rule 115 of CGST Rules, 2017 deals with demand confirmed by court.

Applicable forms

According to Rule 115 of CGST Rules, 2017, Form GST APL-04 is to be used by jurisdiction officer to issue a statement indicating the final amount of demand confirmed by the High Court and/or Supreme Court.