Section 112 of CGST Act, 2017 : Section 112: Appeals To Appellate Tribunal

Explanation using Example

Imagine a scenario where a business owner, Mr. Sharma, has been issued an order by the GST authorities demanding additional tax and imposing a penalty due to an alleged misclassification of goods under GST rates. Mr. Sharma believes that the goods are correctly classified and that the additional tax and penalty should not apply. He decides to appeal against this order.

Mr. Sharma files an appeal to the Appellate Tribunal under Section 112(1) of the CGST Act within three months from the date the order was communicated to him, challenging the authority's decision.

The Appellate Tribunal reviews the appeal and notes that the disputed tax amount is ₹60,000, which exceeds the ₹50,000 threshold mentioned in Section 112(2). Therefore, the Tribunal admits the appeal for hearing.

Meanwhile, the Commissioner of GST, upon reviewing the case records, believes that the Appellate Authority's order might not be legally correct. Under Section 112(3), he directs a subordinate officer to apply to the Appellate Tribunal for a review of certain aspects of the order within six months.

Mr. Sharma, as required by Section 112(8), pays the admitted tax amount in full and 20% of the remaining disputed tax before filing the appeal. Due to this payment, as per Section 112(9), the recovery proceedings for the balance amount are stayed until the appeal is disposed of.

If the GST authorities also have objections to a part of the order that is in Mr. Sharma's favor, they can file a memorandum of cross-objections under Section 112(5) within 45 days of receiving the notice of Mr. Sharma's appeal.

This example illustrates how Section 112 of the CGST Act provides a structured process for taxpayers and authorities to appeal against orders related to GST matters and the conditions under which such appeals are to be filed and processed.