GST Appellate Tribunal holds JC (Appeals) lacked power to remand verification issue under Section 107

5-Second Takeaway

The GST Appellate Tribunal held that the JC (Appeals) could not remand the matter to the original adjudicating authority under Section 107 for verification of documents and tax calculations and for a consequential deletion of demand if found in order. It therefore set aside the impugned appellate order and sent the matter back to the JC (Appeals) to complete the verification and pass a fresh order.

Before the Tribunal, the Revenue argued that the JC (Appeals) had violated Section 107(11) of the CGST Act, 2017 and Rule 113(1) of the CGST Rules, 2017 by unlawfully remanding the case for verification and possible deletion of demand. It contended that the appellate authority had no power to remand under Section 107 and sought setting aside of the Order-in-Appeal with a direction to the JC (Appeals) to complete the verification and decide the appeal afresh.

The Tribunal identified the core issue as whether the JC (Appeals), on the facts of the case, could remit the matter to the original adjudicating authority for verification of documents and evidence, and whether such a course was sustainable under Sections 107(10) and 107(11) of the CGST/KGST Act, 2017. On that question, it held that the appellate order could not stand in its present form.

Accordingly, the Tribunal set aside the impugned Order-in-Appeal dated 9 October 2024 and sent the matter back to the JC (Appeals) for completion of verification and issuance of a fresh order.