The Goods and Services Tax Appellate Tribunal (GSTAT), Ghaziabad, has said that a departmental appeal cannot be upheld when the disputed tax demand is less than the stipulated financial limit unless the revenue specifies an exception to the limit.
A Division Bench, Judicial Member Dr Sanjay Kumar Chandhariyavi and Technical Member Sungita Sharma, dismissed the appeal of the revenue along with a disputed amount of Rs 11.88 lakh at the threshold, without analysing the merits. The tribunal said that-
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“No material shows that the Commissioner specifically exercised the residual power, with reasons relating to this case, to bring the appeal within an exception. A mere statement that the Commissioner has approved or authorised the appeal cannot replace compliance with the statutory provisions and binding litigation policy.”
Section 120 of the Uttar Pradesh Goods and Services Tax Act provides authority to the Commissioner to specify fiscal limits for departmental appeals.
Under this provision, Uttar Pradesh has set a Rs 20 lakh fiscal limit for departmental appeals before the GSTAT, subject to certain exceptions.
In this case, the revenue asked to uphold the appeal u/s 112(3) with the permission of the Commissioner, even after the disputed amount was less than the stipulated fiscal limit. The Revenue had to identify and substantiate the specific exception it had relied upon.
The Tribunal held that merely stating the appeal was filed with the Commissioner’s approval was inadequate to prove an exception.
The Revenue Department failed to demonstrate that the appeal involved any significant issue warranting an exception such as a challenge to the Constitution, the invalidation of a rule or circular, a recurring question of law, or a recorded decision by the Commissioner to contest a specific case in the interest of justice or revenue.
Accordingly, the Goods and Services Tax Appellate Tribunal (GSTAT) dismissed the appeal, deeming it not maintainable, as the disputed amount of ₹11.88 lakh fell below the prescribed threshold of ₹20 lakh and no exception to this rule was established.
It mentioned that it had not examined or adjudicated the merits of the tax dispute, and the dismissal was based solely on the policy regarding applicable monetary limits.
| Case Title | Sandeep Tiwari vs. Gainwell Commosales Private Limited |
| Case No. | 2026109301001667 |
| GSTIN | 09AAFCG8736M1ZX |
| Appeal No. | AD090725066501Y |
| Ghaziabad GSTAT | Read Order |
