Section 107(1)

Any person aggrieved by any decision or order passed by an adjudicating authority^[2(4)] under this Act or the SGST/UTGST Act

may appeal to such Appellate Authority^[2(8)] as may be prescribed

within 3 months from the date communication of such order

Period of 3 months has to be calculated from the date of communication of order.

Section 107(5) read with Rule 108(1)

An appeal u/ss (1) shall be filed in FORM APL-01, along with the relevant documents,

[1][electronically] and

a provisional acknowledgement shall be issued to the appellant immediately.

[2][Proviso to Rule 108(1)

an appeal may be filed manually in GST APL-01, along with the relevant documents, only if-

(i) the Commissioner has so notified, or

(ii) the same cannot be filed electronically due to non-availability of the decision or order to be appealed against on the common portal,

and in such case, a provisional acknowledgement shall be issued to the appellant immediately]

Section 107(6)

No appeal shall be filed u/ss (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 10% of the remaining amount of tax in dispute arising from the said order [3][subject to a maximum of Rs.25 Cr], in relation to which the appeal has been filed.

[4][Proviso to Section 107(6)

In case of any order demanding penalty without involving demand of any tax,

no appeal shall be filed against such order unless 10% of the said penalty has been paid by the appellant].

Section 107(7)

Where the appellant has paid the amount u/ss (6),

the recovery proceedings for the balance amount shall be deemed to be stayed.

Rule 108(2)

The grounds of appeal and the form of verification as contained in GST APL-01

shall be signed in the manner specified in rule 26.

[5][Rule 108(3)

Where the decision or order appealed against is uploaded on the common portal,

a final acknowledgment, indicating appeal number, shall be issued in GST APL-02 by

the Appellate Authority or

an officer authorised by him in this behalf

and the date of issue of the provisional acknowledgment shall be considered as the date of filing of appeal.

1^st Proviso to Rule 108(3)

where the decision or order appealed against is not uploaded on the common portal,

the appellant shall submit a self-certified copy of the said decision or order

within 7 days from the date of filing of GST APL-01

and a final acknowledgment, indicating appeal number, shall be issued in GST APL-02 by

the Appellate Authority or

an officer authorised by him in this behalf,

and the date of issue of the provisional acknowledgment shall be considered as the date of filing of appeal

2^nd Proviso to Rule 108(3)

Where the said self-certified copy of the decision or order is not submitted within 7 days from the date of filing of FORM GST APL-01,

the date of submission of such copy shall be considered as the date of filing of appeal.

Explanation to Rule 108

For this rule, the appeal shall be treated as filed only when the final acknowledgement, indicating the appeal number is issued.

At times, the Department itself may not be in agreement with the decision or order passed by the adjudicating authority.

in such cases, the Department can file known as a “review application/appeal” with the AA.

Section 107(2)

The Commissioner may,

on his own motion, or

upon request from the Commissioner of State/UT 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 STGST/ UTGST 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 6 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)

An application by an authorized officer to the AA u/ss (2),

shall be dealt with by the AA 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(5) read with Rule 109(1)

An application to the AA u/s 107(2)

shall be made in GST APL-03, along with the relevant documents,

[6][electronically]

a provisional acknowledgment shall be issued to the appellant immediately.

Rule 109(2)

A certified copy of the decision or order appealed against shall be submitted within 7 days of the filing the application u/sr (1) and

an appeal number shall be generated by the AA or an officer authorised by him in this behalf.

Section 107(4)

The AA may,

if he is satisfied that the appellant was prevented by sufficient cause from presenting the appeal within the aforesaid period of 3 or 6 months,

allow it to be presented within a further period of 1 month.

Section 107(8)

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

Section 107(9)

The AA 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 3 times.

Section 107(10)

The AA 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 AA 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:

Opportunity of being heard before enhancing any tax, fine etc

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 ITC

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 AA is of the opinion that

any tax has not been paid or short-paid or erroneously refunded, or

where ITC has been wrongly availed or utilised,

no order requiring the appellant to pay such tax or ITC 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 u/s 73 or 74.

Section 107(12)

The order of the AA 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 AA shall, where it is possible to do so,

hear and decide every appeal within a period of 1 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 AA 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 AA

shall also be sent to the

jurisdictional Commissioner or the authority designated by him in this behalf and

jurisdictional Commissioner of State/UT tax or an authority designated by him in this behalf.

Section 108(16)

Every order passed under this section shall,

subject to the provisions of section 108 or 113 or 117 or 118 be final and binding on the parties.