Revision by Revisional Authority :
Provisions relating to revision of order of adjudicating authority were available in many State Vat Laws.
However, these powers were not available in Central Excise and service tax.
Now, such powers have been provided in GST Law, though with some restrictions.
“Revisional Authority” means an authority appointed or authorised for revision of decision or orders as referred to in section 108 – section 2(99) of CGST Act.
Powers of revision – Subject to the provisions of section 121(non-appealable orders) and any rules made thereunder, the Revisional Authority may on his own motion, or upon information received by him or on request from the Commissioner of SGST/UTGST, call for and examine the record of any proceeding, and if he considers that any decision or order passed under CGST Act or under the SGST/UTGST/IGST Act by any officer subordinate to him is erroneous in so far as it is prejudicial to the interest of the revenue and is illegal or improper or has not taken into account certain material facts, whether available at the time of issuance of the said order or not or in consequence of an observation by the Comptroller and Auditor General of India, he may, if necessary, stay the operation of such decision or order for such period as he deems fit and after giving the person concerned an opportunity of being heard and after making such further inquiry as may be necessary, pass such order, as he thinks just and proper, including enhancing or modifying or annulling the said decision or order – section 108(1) of CGST Act.
Thus, Revisional Authority can act suo motu or at request of State/Union Territory Authorities but not on request of taxable person (appellant).
Record includes all records relating to proceedings – ‘Record’ shall include all records relating to any
proceedings under this Act available at the time of examination by the Revisional Authority – section 108(6)(i) of CGST Act.
Thus, Revisional Authority can consider records generated or made available even after passing of adjudication order.
Decision includes intimation also – For the purposes of this section, ‘decision’ shall include intimation given by any officer lower in rank than Revisional Authority – section 108(6)(ii) of CGST Act.
When Revisional cannot revise order – The Revisional Authority hall not exercise any power under section 108(1), if—
(a) the order has been subject to an appeal under section 107 or under section 112 or under section 117 or under section 118. [However, issue not covered in appeal can be taken in revision] or
(b) the period specified under section 107(2) has not yet expired or more than three years have expired after the passing of the decision or order sought to be revised.
(c) the order has already been taken for revision under this section at any earlier stage or
(d) the order has been passed in exercise of powers under section 108(1) [i.e. once Revisional order is passed, further revision is not permissible] – section 108(2) of CGST Act.
Thus, Revisional Authority can take action after period of appeal (three months) is over but before three years of date of passing of order.
Issue not covered in appeal can be taken in revision – Revisional Authority may pass an order under section 108(1) on any point which has not been raised and decided in an appeal referred to in clause section 108(2)(a), before the expiry of a period of one year from the date of the order in such appeal or before the expiry of a period of three years referred to in clause section 108(2)(b) , whichever is later – proviso to section 108(2) of CGST Act.
Order in revision final subject to further appeal – Every order passed in revision under sub-section (1) shall, subject to the provisions of section 113, 117 or 118, be final and binding on all parties- section 108(3) of CGST Act.
Exclusion of certain time spent in appeal – If the said decision or order involves an issue on which the Appellate Tribunal or the High Court has given its decision which is prejudicial to the interest of revenue in some other proceedings and an appeal to the High Court or the Supreme Court against such decision of the Appellate Tribunal or as the case may be, the High Court is pending, the period spent between the date of the decision of the Appellate Tribunal and the date of the decision of the High Court or as the case may be, the date of the decision of the High Court and the date of the decision of the Supreme Court shall be excluded in computing the period referred to in section 108(2)(b) where proceedings for revision have been initiated by way of issue of a notice under this section – section 108(4) of CGST Act.
Period for which stay was in operation to be excluded – Where the issuance of an order under section 108(1) is stayed by the order of a Court or Tribunal, the period of such stay shall be excluded in computing the period referred to in section 108(2)(b) – section 108(5) of CGST Act.