Page 6 - Chap22 Appeals & Revision

actual receipt of goods for the month of January. The Joint Commissioner of Central Tax, not being
satisfied by the reply given by the company to the SCN, passed a written order on 28th April which

was received by the company on 1st May. The order confirmed the tax demand of ₹ 30,00,000 (i.e.,
CGST ₹ 15,00,000 and SGST ₹ 15,00,000) and imposed a penalty of equal amount under section 74.
Aggrieved by the order, Chandan & Co. decides to contest the order of adjudication in its
entirety. It seeks advice on the following issues -
(i) To whom should it make an appeal? Can it directly approach the High Court?

(ii) What is the time limit for filing the appeal in the given case?
(iii) Is there any requirement of pre-deposit of any amount and if so, what would be the amount?
Provide your legal and reasoned advice to Chandan & Co. [CA Final May 22 Exam]

Answer:-
i) Ü An appeal against the order passed by Joint Commissioner lies before the Appellate Authority -
Commissioner (Appeals).

Ü Chandan & Co. cannot directly approach the High Court.
Ü It needs to first file an appeal to Appellate Authority and then to Appellate Tribunal.
Ü However, a writ petition can be filed directly before the High Court for relief.

ii) Ü The time-limit for filing an appeal in the given case is 3 months from the date of communication
of the order appealed against, i.e., 3 months from 1st May.
Ü Hence, the appeal must be filed on or before 1st August.
iii) Ü No appeal can be filed before the Appellate Authority unless appellant Chandan & Co. has paid
pre-deposit of ₹ 3,00,000 which is computed as sum of the following:-
a) Full amount of tax, interest & penalty arising from the order as admitted by him (i.e. Nil) &

b) 10% of the remaining tax in dispute (₹ 30,00,000) arising from the order, i.e. ₹ 3,00,000,
subject to maximum ₹ 50 Crores.

CCP 22.01.05.00
Pursuant to audit conducted by the tax authorities under section 65 of the CGST Act, 2017, a show
cause notice was issued u/s 74 of CGST Act to Home Furnishers, Surat, a registered supplier,

alleging that it had wrongly availed the input tax credit without actual receipt of goods for the month
of July, 20XX. In the absence of a satisfactory reply from Home Furnishers, Joint Commissioner of
Central Tax passed an adjudication order dated 20th August (received by Home Furnishers on 22th
August) confirming a tax demand of ` 50,00,000 (i.e., CGST ₹ 25,00,000 and SGST ₹ 25,00,000)

and imposing a penalty of equal amount under under relevant provisions of the CGST Act, 2017.
Home Furnishers does not agree with the order passed by the Joint Commissioner. It decides to file
an appeal with the Appellate Authority against the said adjudication order. It has approached you for
seeking advice on the following issues in this regard:-
1) Can Home Furnishers file an appeal to Appellate Authority against the adjudication order passed

by the Joint Commissioner of Central Tax? If yes, till what date can the appeal be filed?
2) Does Home Furnishers need to approach both the Central and State Appellate Authorities for
exercising its right of appeal?

3) Home Furnishers is of the view that there is no requirement of paying pre-deposit of any kind
before filing an appeal with the Appellate Authority. Give your opinion on the issue. [Study Mat]

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