CBIC streamlines appeals against tax orders

New Delhi: The government has clarified which authority businesses should approach while contesting decisions relating to tax notices issued by the Directorate General of GST Intelligence (DGGI), in a move that seeks to remove uncertainty and improve predictability. 

An order from the Central Board of Indirect Taxes and Customs (CBIC) on Tuesday assigned senior officials of specified ranks to handle review, revision and appeal of departmental decisions arising from show cause notices issued by the DGGI. 

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These departmental decisions are taken by ‘common adjudicating authorities’ based on responses given by businesses to DGGI notices. 

The new officials now designated to review, revise or hear appeals of their decisions are superior to them.

Procedural clarity brought

Experts pointed out that the CBIC order offers procedural clarity on the appellate and review mechanisms for orders passed by common adjudicating authorities. For taxpayers, this eliminates jurisdictional confusion and ensures that appeals, reviews, and revisions follow a predictable route aligned with the officer’s territorial posting, said Rajat Mohan, senior partner at AMRG & Associates.

“This circular will have far-reaching implications across sectors frequently targeted in large-scale GST investigations, including banking, insurance, online gaming, hospitality, real estate, fast moving consumer goods, manufacturing and logistics. These industries often receive complex, multi-state notices from DGGI, where the lack of defined appellate authority created procedural delays and litigation uncertainty,” said Mohan.

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By standardizing the post-adjudication hierarchy and departmental representation, CBIC’s circular enhances legal clarity, streamlines compliance, and significantly reduces the litigation burden on businesses under the GST regime, he said. 

It reflects the government’s evolving commitment to procedural fairness in high-stakes investigations across sectors, Mohan added.

Improving efficiency

Improving the tax administration’s efficiency, cutting down delays and speeding up tax refunds are priorities for the government.  Finance minister Nirmala Sitharaman last week directed CBIC to close investigations swiftly, speed up tax refunds and make goods and services tax (GST) registration easier. 

At a meeting in the capital, Sitharaman also asked the officials to resolve grievances of businesses promptly while maintaining focus on tackling tax evasion and wrongful tax credit claims, Mint reported on Friday. 

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The minister also then reviewed the performance of Central GST and customs authorities and asked the principal chief commissioners, chief commissioners, and director generals of CBIC to enhance performance, fill vacant posts, and enhance administrative efficiency.