In a recent move to address concerns related to the filing of appeals under the Central Goods and Services Tax Act, 2017, the Ministry of Finance, Department of Revenue, Central Board of Indirect Taxes and Customs has issued Notification No. 53/2023–Central Tax. Dated 2nd November 2023, this notification outlines a special procedure for taxable persons who couldn’t file an appeal against the order passed by the proper officer on or before 31st March 2023 under section 73 or 74 of the said Act.
Key Highlights of the Notification
1. Special Procedure for Unfiled Appeals
The notification identifies a specific class of persons, termed as “said persons,” who failed to file an appeal within the stipulated time against the order passed by the proper officer. These are individuals whose appeals were rejected solely due to the filing time exceeding the limits specified in section 107 of the said Act.
2. Filing Appeals under the New Procedure
Under the special procedure, said persons are required to file an appeal against the order in FORM GST APL-01. The deadline for this filing is the 31st day of January 2024. Importantly, any appeal pending before the Appellate Authority before the issuance of this notification will be deemed to have been filed in accordance with this new procedure.
3. Conditions for Filing Appeals
No appeal can be filed under this notification unless the appellant has fulfilled the following conditions:
- Paid, in full, the admitted amount of tax, interest, fine, fee, and penalty arising from the impugned order.
- Paid a sum equal to twelve and a half per cent of the remaining amount of tax in dispute arising from the said order, with a maximum limit of twenty-five crore rupees. At least twenty percent of this amount should be paid by debiting from the Electronic Cash Ledger.
4. Refund Restrictions
The notification places restrictions on refunds until the appeal is disposed of. No refund will be granted for any amount paid by the appellant, either voluntarily or on the direction of any authority or court, exceeding the amount specified in para 3 of this notification for filing an appeal.
5. Limitations on Admissible Appeals
This notification specifies that no appeal under its purview will be admissible for demands not involving tax. The focus is primarily on issues related to tax.
6. Application of GST Rules
The provisions of Chapter XIII of the Central Goods and Service Tax Rules, 2017, will apply to appeals filed under this notification, with necessary adjustments.
Conclusion
This notification comes as a relief for those individuals who faced rejection of appeals due to procedural timelines. By introducing a special procedure, the government aims to streamline the appeals process and provide an avenue for those who missed the initial deadlines. Taxable persons falling under this category are encouraged to adhere to the outlined conditions and deadlines to ensure the smooth processing of their appeals.
