Filing of Appeal under GST

This query is : Resolved

Shubham Sundesha (Querist)
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04 January 2024 Dear Sir,
One of my client has received Assessment Demand Order under Section 73 of CGST Act in GST DRC-07 on dated 28/07/2023 against which we had filed Rectification Application within 3 months time under section 161 of CGST Act to rectify the errors made on dated 02/09/2023. However the officer has rejected application and passed Order for rejection of Rectification on dated 28/11/2023 keeping the demand order of DRC-07 unchanged. Now we wish to file appeal against the Order passed of Rectification within 3 months time limit. However while filing appeal on Portal we found both the Orders reflecting on portal, the Order of DRC-07 is shown under Assessment Demand Order and latter order is shown under Assessment Non Demand Order. If I select the first order then they shown there is delay in filing of appeal however if I select Latter order i.e. Rectification Rejection Order, in that there is no demand reflecting so I am unable to pay 10% of Demand as per Section 107 of CGST Act. What has to be done?

Logically we are following the act & rules in right terms. However Please guide whether we are correct and also help me with any Instructions or Circular or Notification or Case study available for aforesaid same situation.

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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07 July 2024 In your situation, it seems there's a dilemma regarding which order to appeal against due to the discrepancies in the portal reflecting both the DRC-07 (Assessment Demand Order) and the Rectification Rejection Order (Assessment Non Demand Order). Here’s a structured approach to resolve this:

1. **Verify Orders**: Double-check the details of both orders on the GST portal to ensure accuracy in terms of dates, amounts, and demands.

2. **Selecting the Correct Order for Appeal**:
- **Assessment Demand Order (DRC-07)**: This order indicates the original demand raised under Section 73 of the CGST Act. If you choose to appeal against this order, you will need to pay 10% of the disputed demand amount as per Section 107 of the CGST Act, even if you feel the rectification should have corrected this demand.

- **Rectification Rejection Order**: This order signifies the rejection of your rectification application. If there is no demand reflecting in this order, you cannot pay 10% of any demand amount. However, you should verify if this order is appealable in its current form or if it can be combined with the DRC-07 appeal.

3. **Filing the Appeal**:
- If you decide to appeal against the **Assessment Demand Order (DRC-07)**:
- Pay 10% of the disputed demand amount as required by Section 107 of the CGST Act.
- Follow the appeal filing procedure on the GST portal, ensuring all necessary documents and grounds for appeal are properly prepared and submitted.

- If you consider appealing against the **Rectification Rejection Order**:
- Ensure that you understand the implications, such as whether this order alone is appealable or if it should be combined with the DRC-07 appeal.
- If there's no demand reflected in this order, clarify with the GST department or seek legal advice on how to proceed.

4. **Documentation and Legal Assistance**:
- Gather all relevant documents, including copies of both orders, your rectification application, rejection order, and any communication with the GST department.
- Consider consulting with a tax professional or legal advisor who can provide specific guidance based on the details of your case and the current status reflected on the GST portal.

5. **Review Circulars or Notifications**: Look for any specific circulars, notifications, or case studies that might provide guidance on similar situations. These resources can help you understand the procedural aspects and legal precedents.

6. **Compliance and Timelines**: Ensure all appeals are filed within the stipulated time limits mentioned in the CGST Act to avoid further complications.

Given the complexities involved, it's crucial to approach this with a clear understanding of the orders and their implications. Seeking professional advice will be beneficial to navigate through the appeal process effectively.