Taxpayer Jurisdiction will Prevail in Filing Cases Decided by Common
Jurisdiction Authority, Each Commissioner will Decide on Appeal to GSTAT
1.
Circular Details
o
CBIC issued Circular No. 256/02/2026-GST
dated 25 July 2026 to clarify the procedure for departmental appeals
before the Goods and Services Tax Appellate Tribunal (GSTAT) in DGGI
cases where the Order-in-Original (OIO) has been passed by a Common
Adjudicating Authority (CAA).
2.
Background
o
Additional/Joint Commissioners designated as Common
Adjudicating Authorities have all-India jurisdiction to adjudicate
show cause notices issued by the Directorate General of GST Intelligence
(DGGI).
o
Earlier Circulars 169/01/2022-GST, 239/33/2024-GST,
and 250/07/2025-GST had laid down procedures for adjudication and
departmental appeals before the first appellate authority.
3.
Need for Clarification
o
Field formations sought clarity on:
§ Who will
act as the reviewing authority after an appellate order.
§ Which
authority should file the departmental appeal before GSTAT.
§ Which
GSTAT Bench will have jurisdiction.
4.
Consultation
o
The matter was examined in consultation with the Ministry
of Law & Justice to ensure a uniform procedure for departmental
appeals.
5.
Communication of Appellate Orders
o
The appellate authority must:
§ Upload
the Order-in-Appeal on the GST common portal.
§ Send
copies (electronic and physical) to the Principal Commissioner/Commissioner
having jurisdiction over the Common Adjudicating Authority.
6.
Role of Commissioner Having Jurisdiction over CAA
o
This Commissioner will:
§ Examine
the appellate order.
§ Obtain
comments from DGGI, if necessary.
§ Forward
recommendations to the jurisdictional Commissioners of all affected
taxpayers/notices.
7.
Reviewing Authority
o
The jurisdictional CGST Principal
Commissioner/Commissioner of each taxable person will act as the reviewing
authority under Section 112(3) of the CGST Act.
o
The reviewing authority may authorize a subordinate
officer to file and pursue the departmental appeal before GSTAT.
8.
Filing of Appeals
o
Separate appeals must be filed for each
taxable person/noticee.
o
Appeals must be filed by the jurisdictional CGST
Commissionerate before the GSTAT Bench having territorial jurisdiction
over the taxpayer, not over the Common Adjudicating Authority.
9.
Post-Filing Intimation
o
After filing an appeal:
§ The
jurisdictional Commissioner must inform the Commissioner having jurisdiction
over the CAA and provide a copy of the appeal.
§ If no
appeal is proposed, the decision must also be communicated to the Commissioner
having jurisdiction over the CAA.
10.
Implementation
o
Any implementation difficulties may be referred to
the CBIC for clarification.
Key
Takeaway
The circular establishes a uniform,
decentralized mechanism for departmental appeals in DGGI cases adjudicated
by Common Adjudicating Authorities. While adjudication is centralized, review,
appeal filing, and GSTAT jurisdiction remain with the taxpayer's jurisdictional
CGST Commissionerate and the GSTAT Bench having territorial jurisdiction over
the taxpayer.