Appeals by the party before the Appellate Tribunal :

Section 81 deals with the constitution of the National Appellate Tribunal. The provisions of Section 81, though repeated in the SGST portion, are identical.

It is provided that the Central Government shall on the recommendation of the GST Council2 constitute a “National Goods and Services Tax Appellate Tribunal” (Tribunal, for short).

Following are some administrative features of the Tribunal :-

• Headed by a National President

• One branch for each state (the State GST Tribunal), headed by a State President

• Every State GST Tribunal to consist of as many Members (Judicial), Members (Technical – CGST) and Members (Technical – SGST) as may be prescribed

• The qualifications, eligibility conditions and the manner of selection and appointment of the National President, the State Presidents, and the Members to be as prescribed on the recommendations of the Council

• The National President and the State Presidents to exercise such powers and discharge such functions as prescribed on the recommendations of the Council

• On ceasing to hold office, the National President, the State Presidents or other Members not to be entitled to appear before the Tribunal

Section 82 (CGST) and Section 82 (SGST) deal with the filing of appeals before the Tribunal. The similarities and differences between these (please see Appendix) are on the same lines as in the case of Section 79.

The Tribunal is the second level of appeal, where appeals can be filed against the orders-in-appeal passed by the FAA under section 79, by any person aggrieved by such an order-in-appeal. (In case of SGST, appeal against the Revision Order passed by the Commissioner under section 80, will also lie to the Tribunal).

The Tribunal has the discretion not to admit any appeal involving an amount of Rs. 1 lakh or less.

Appeal to the Tribunal is to be filed within 3 months from the communication of the order under appeal. Further, Tribunal has the power to condone delay (of any length) on being satisfied that there is sufficient cause for the delay.

The law also provides for cross-objections by the respondent against such part of the order against which the respondent may initially not have chosen to file an appeal. It is provided that on receipt of notice that an appeal has been filed (by the appellant), the party against whom the appeal has been preferred (i.e. the respondent) may, notwithstanding that he may not have appealed against such order or any part thereof, file within 45 days a memorandum of cross-objections against any part of the order appealed against and such memorandum shall be disposed of by the Appellate Tribunal as if it were an appeal presented within the time specified for the initial appeal. Condonation of delay (on sufficient cause) applies here also.

The form, fees, etc. for the appeals to Tribunal shall be as prescribed by Rules being made separately.

The provisions for pre-deposit (including interest thereon) in respect of appeals before the Tribunal are similar to those before the FAA.

Section 83 (similar for both CGST and SGST, see Appendix) deals with the disposal of the aforesaid appeals (including cross-objections, review appeals, etc.) by the Tribunal. It is provided that the Tribunal after hearing both sides may pass such orders thereon as it thinks fit, confirming, modifying or annulling the decision or order
appealed against or may refer the case back to the FAA (or, in the case of SGST, to the revisional authority), or to the original adjudicating authority, with such directions as it may think fit, for a fresh adjudication or decision, as the case may be, after taking additional evidence, if necessary. For reasons of natural justice (reasonable opportunity) it is also provided that the Tribunal may, if sufficient cause is shown, grant upto 3 adjournments to either side.

The Tribunal also has the power to rectify any apparent mistake in its order if such mistake is noticed by the Tribunal or is brought to its notice by either side, within a period of three months from the date of the order. However, no amendment which has the effect of enhancing an assessment or reducing a refund or input tax credit or otherwise increasing the liability of the other party, shall be made under this provision unless the Tribunal has given notice to him of its intention to do so and has allowed him a reasonable opportunity of being heard.

The Tribunal shall, where it is possible to do so, hear and decide every appeal within a period of 1 year from filing.

Copies of the Tribunal’s orders are to be sent to the First Appellate Authority, Revisional Authority (in case of appeals against Revision Orders passed by SGST Commissioner), the original adjudicating authority, the appellant, the jurisdictional Commissioner of CGST and the jurisdictional Commissioner of SGST.

As the Tribunal is considered to be the final fact-finding authority, every order passed by it shall be final, subject to the provisions of section 87 (appeal to HC on questions of law) or 88 (appeal to SC).

Section 84 (common for CGST and SGST) lays down the procedure to be followed by the Tribunal. It is provided that the Tribunal’s powers and functions may be exercised and discharged by Benches constituted by the National President or the State Presidents from amongst the members thereof. It is further provided that a Bench shall
consist of one Member (Judicial), one Member (Technical-CGST) and one Member (Technical-SGST). Thus, the “default” Bench in GST shall be a 3-Member Bench. However, duly constituted Single Member Benches may dispose of any case involving a disputed amount not exceeding Rs 10 lakhs.

If the members of a Bench differ in opinion on any point, the point shall be decided according to the opinion of the majority, if there is a majority; but if the members are equally divided, they shall refer the point(s) of difference to the National President or the State President who shall either hear the point(s) himself or refer the case for hearing on such point(s) by one or more of the other members of the Tribunal and such point(s) shall be decided according to the opinion of the majority of these members of the Tribunal who have heard the case, including those who first heard it.

For other matters such as the Tribunal’s power to regulate its own procedure, the Tribunal being vested with the powers of a court under the Code of Civil Procedure in respect of specified matters, proceedings before the Tribunal being deemed to be judicial proceedings within the IPC, etc., the text of the model law (see Appendix) may be referred to, as these are largely same as the existing provisions in the central/state laws.