Any legal appeal is an attempt to have the judgment of a lower court reconsidered in front of a higher court. When there are any legal difficulties or disputes, appeals are made. The GST law provides for a two-tier appellate mechanism to resolve disputes and enforce compliance. The first tier of appeal is with the Adjudicating Authority, while the second tier of appeal is with the Appellate Authority.
Grounds of Appeal under GST
The grounds of appeal under GST are as follows:
- Unlawful Demand: A taxpayer may file an appeal if they believe that the demand for tax is unlawful or incorrect.
- Penalties: Taxpayer may file an appeal if they believe that the penalty imposed on them is unjustified or incorrect.
- Classification: A taxpayer may file an appeal if they believe that the classification of goods or services is incorrect.
- Valuation: A taxpayer may file an appeal if they believe that the valuation of goods or services is incorrect.
- Refunds: A taxpayer may file an appeal if they believe that the refund claimed by them has been wrongly rejected or delayed.
In order to prepare for drafting grounds of a GST appeal, having the documentation in place is extremely important. Before drafting the grounds of appeal, one must carry out an in-depth study of all the documents including but not limited to:
- The GST Returns,
- Copies of communications received from the proper officer timely
- Copies of show cause notice (SCN),
- Replies filed in response to the SCN,
- Copies of proceedings/orders or decisions passed by the adjudicating authority,
- Copy of the appellate order.
What are appealable orders?
Listed below are the orders against which the aggrieved person can file an appeal:
- Enforcement Order
- Assessment or Demand Order
- Registration Order
- Refund Order
- Assessment Non-Demand Order
- LUT Order
Non-appealable orders?
To control the appeals process and save needless legal costs, the Board or the State Government may, at the Council’s advice, set monetary limits for appeals by the GST officer.
An appeal cannot be made against every decision. The following decisions made by a GST officer cannot be appealed:
- Order to transfer the proceedings from one officer to another officer;
- Order to seize or retain books of account and other documents;
- Order sanctioning prosecution under the Act; or
- Order allowing payment of tax and other amounts in installments
Key Deliverables
a. Duly filed Application
b. Appeal Draft Documents