CBIC Notification 53/2023 Dt. 2 November 2023
CBIC Notification 53: The Central Board of Indirect Taxes and Customs (CBIC), on recommendation of the GST Council, notified that the taxable persons who could not file an appeal against the order passed by the proper officer on or before the 31st day of March, 2023 under section 73 or 74 of the CGST Act, within the time period specified in sub-section (1) of section 107 read with sub-section (4) of section 107 of the Act, can file appeals against such orders in Form GST APL-1 up-to 31 January 2024, subject to satisfying the below mentioned conditions.
Provided that, the taxable persons whose appeal against such orders was rejected solely on the grounds that the said appeal was not filed within the time period specified under section 107 Act, can also avail the benefit of this notification.
Also notified by CBIC that, an appeal against the said order filed in accordance with the provisions of section 107 of the CGST Act, and pending before the Appellate Authority before the issuance of this notification, shall be deemed to have been filed in accordance with this notification, if it fulfils the condition specified at para 3 below.
Conditions to avail this benefit of Time Extension by CBIC
(i) The taxpayer has to pay in full, such part of the amount of tax, interest, fine, fee and penalty arising from the impugned order, as is admitted by him; and
(ii) Additionally, he should deposit 25.5% of the disputed amount of tax as per the order, out of which at-least 20% should be paid by debiting the Electronics Cash Ledger.
It is also notified by CBIC that,
(i) No refund shall be granted against any payment made the taxpayers in excess of the amount said above, until the disposal of the appeal.
(ii) Appeal under this notification shall not be admissible in respect of a demand not involving tax.
(iii) The provisions of Chapter XIII of the Central Goods and Service Tax Rules, 2017 (12 of 2017), shall mutatis mutandis, apply to an appeal filed under this notification.
Some Basics about the Sections quoted under this CBIC notification for ready reference while reading the notification
Section 73 of CGST Act 2017
Section 73 of the CGST Act 2017 pertains to the determination of taxes that have not been paid, have been underpaid, or have been erroneously refunded, as well as cases where input tax credit has been wrongly availed or utilized, except in situations involving fraud or deliberate misstatement or concealment of information with the intent to evade taxes.
When the proper officer has reason to believe that tax payments are outstanding, underpaid, or refunds have been made in error, or that input tax credit has been incorrectly claimed or used, without any fraudulent or intentional misrepresentation to avoid tax, they will issue a notice to the individual liable for the unpaid or underpaid taxes, the recipient of the erroneous refund, or the entity that has wrongly availed or utilized the input tax credit.
This notice will require them to provide reasons as to why they should not be obligated to pay the specified amount in the notice, along with any applicable interest as per Section 50, and penalties as per the provisions of the CGST Act or the corresponding rules.
Section 74 of CGST Act 2017
Section 74 of the CGST Act pertains to determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilized by reason of fraud or any willful- misstatement or suppression of facts.
Where it appears to the proper officer that any tax has not been paid or short paid or erroneously refunded or where input tax credit has been wrongly availed or utilized by reason of fraud, or any willful-misstatement or suppression of facts to evade tax, he shall serve notice on the person chargeable with tax which has not been so paid or which has been so short paid or to whom the refund has erroneously been made, or who has wrongly availed or utilized input tax credit.
This Notice will be requiring such taxpayer to show cause as to why he should not pay the amount specified in the notice along with interest payable thereon under section 50 and a penalty equivalent to the tax specified in the notice.
Section 107 of CGST Act 2017
Section 107 of the CGST Act 2017 outlines the procedures for filing appeals with the Appellate Authority.
According to Sub-Section (1) of Section 107, any individual who feels aggrieved by a decision or order issued under the CGST Act, the State Goods and Services Tax Act, or the Union Territory Goods and Services Tax Act by an adjudicating authority, has the right to appeal to the designated Appellate Authority. This appeal must be made within three months from the date when the said decision or order is communicated to the concerned individual.
Sub-Section (4) of Section 107 further states that the Appellate Authority, upon being convinced that the appellant had a valid reason that prevented them from filing the appeal within the initial three-month period, can grant an extension of one month for the appeal to be submitted.
To Access the CBIC Notification No. 53/2023 CLICK HERE
To Access the CBIC Notification No. 52/2023 CLICK HERE
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