[Opinion] To Appeal or Not to Appeal | CBIC Sets Limits for GST Appeals by Department

Ajay Kumar Maggidi – [2024] 164 taxmann.com 48 (Article)

1. Background

In pursuance of 53rd GST Council recommendations, the Central Board of Indirect Taxes and Customs (CBIC) has recently issued Circular No. 207/1/2024-GST dated 26-June-2024, setting up new monetary limits for the Department’s filing of appeals before the GST Appellate Tribunal (GSTAT), High Courts, and the Supreme Court. This move is aimed to minimize government litigation and enhance the efficiency of judicial resource allocation.

2. Objectives of Government

1. The aim is to optimum the utilization of judicial resources and expedite the resolution of pending cases.
2. It underscores the importance of prudent litigation practices by establishing thresholds for filing appeals in Revenue matters.
3. The appeals should not be pursued when the amount involved is below a specified monetary limit set by Revenue authorities.
4. Discourage filing appeals in cases where established precedents from Tribunals and High Courts have settled the matter and have not been contested in the Supreme Court.

3. Monetary Limits for Filing Appeals

Section 120 of the CGST Act empowers CBIC to fix the monetary limits for appeals by the authorities. It says as follows:

When GST officers can not appeal certain decisions.

1. The tax authority (Board) can set minimum amounts for appeals. This means if the tax issue involves a smaller amount, the tax office can’t appeal the decision.
2. If the tax office doesn’t appeal because of the limit, they can still appeal other cases with similar issues, even if the amounts are bigger.
3. Just because the tax office doesn’t appeal due to the limit, it doesn’t mean they agree with the decision.
4. If a case goes to court anyway, the judge will take into account why the tax office didn’t appeal in the first place (because of the limit).

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