CBIC Clarifies Departmental Appeals Before GSTAT in DGGI Common Adjudication Authority Cases

The Central Board of Indirect Taxes and Customs (CBIC) has issued Circular No. 256/02/2026-GST dated 25 July 2026 to clarify the procedure for filing departmental appeals before the Goods and Services Tax Appellate Tribunal (GSTAT) in cases where the Order-in-Original (OIO) has been passed by a Common Adjudicating Authority (CAA) in investigations conducted by the Directorate General of GST Intelligence (DGGI).

The clarification addresses procedural ambiguities regarding the reviewing authority, the authority responsible for filing appeals before GSTAT, and the appropriate territorial jurisdiction of the GSTAT Bench. The circular aims to ensure uniformity in handling appeals across Commissionerates.

What is the Background?

To streamline adjudication of DGGI investigations, CBIC had earlier empowered designated Additional/Joint Commissioners as Common Adjudicating Authorities (CAA) with all-India jurisdiction. Various circulars were subsequently issued prescribing procedures for adjudication and departmental appeals before the appellate authority.

However, field formations sought clarification on the procedure to be followed when departmental appeals are required before GSTAT against appellate orders arising from CAA adjudications.

Key Clarifications Issued by CBIC

1. Communication of Appellate Orders

After passing an Order-in-Appeal under Section 107 of the CGST Act, the appellate authority shall:

  • Upload the order on the GST common portal.
  • Send a copy through email.
  • Forward a physical copy to the Principal Commissioner/Commissioner having jurisdiction over the Common Adjudicating Authority.

2. Examination of the Order

The Commissioner having jurisdiction over the Common Adjudicating Authority shall:

  • Examine the appellate order.
  • Obtain comments from DGGI, wherever necessary.
  • Forward recommendations and inputs to the jurisdictional Commissioners of all affected taxpayers.

3. Who Will Be the Reviewing Authority?

The circular clarifies that the jurisdictional Principal Commissioner/Commissioner of the respective taxpayer or noticee will act as the reviewing authority under Section 112(3) of the CGST Act.

The reviewing authority shall:

  • Examine the legality and propriety of the appellate order.
  • Consider recommendations received from the Commissioner having jurisdiction over the Common Adjudicating Authority.
  • Authorize a subordinate officer to file and pursue departmental appeals before GSTAT whenever required.

4. Separate Appeals for Each Taxpayer

CBIC has clarified that:

  • Separate departmental appeals must be filed for each taxpayer or noticee.
  • The appeal shall be filed by the jurisdictional CGST Commissionerate of that taxpayer.
  • Appeals must be filed before the GSTAT Bench having territorial jurisdiction over the taxpayer’s location—not the Commissionerate of the Common Adjudicating Authority.

5. Post-Filing Intimation

Once the appeal has been filed:

  • The jurisdictional Commissioner must inform the Commissioner having jurisdiction over the Common Adjudicating Authority.
  • A copy of the appeal should also be shared.
  • If no appeal is proposed, the reviewing authority must communicate the decision accordingly.

Why This Clarification is Important

Uniform Appeal Process

The circular removes ambiguity regarding departmental appeals in DGGI cases handled through Common Adjudicating Authorities.

Clearly Identifies Responsibilities

It specifies:

  • Reviewing authority
  • Appeal filing authority
  • Communication mechanism
  • Territorial jurisdiction of GSTAT

Reduces Procedural Disputes

By assigning responsibilities to jurisdictional Commissioners and requiring separate appeals for each taxpayer, CBIC aims to minimize procedural disputes and improve consistency.

Note:

This circular is purely procedural in nature. It does not alter the substantive provisions of the CGST Act but provides a standardized mechanism for reviewing and filing departmental appeals before the GST Appellate Tribunal in DGGI Common Adjudication Authority cases.

Conclusion

Circular No. 256/02/2026-GST establishes a uniform framework for departmental appeals before GSTAT in cases where Orders-in-Original have been passed by Common Adjudicating Authorities in DGGI investigations. By clearly defining the reviewing authority, appeal filing procedure, communication process, and territorial jurisdiction, CBIC has eliminated uncertainty that previously existed among field formations. This clarification is expected to ensure consistency, improve administrative efficiency, and facilitate smoother litigation management under the GST regime.

Notification Reference:

GST
Circular No. 256/02/2026-GST
25/07/2026

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