The CBIC has issued a crucial procedural clarification vide Circular No. 256/02/2026-GST dated 25.07.2026 addressing the mechanism for filing departmental appeals before the Goods and Services Tax Appellate Tribunal (GSTAT) in cases investigated by the Directorate General of GST Intelligence (DGGI) and adjudicated by a Common Adjudicating Authority (CAA). The circular eliminates uncertainty over the competent reviewing authority, the authority responsible for filing appeals, and the appropriate GSTAT Bench. It confirms that, notwithstanding centralized adjudication, the review and appellate process remains taxpayer-centric, with the jurisdictional Commissioner of the taxable person acting as the reviewing authority and the appeal being filed before the GSTAT Bench having territorial jurisdiction over the taxable person.
Key Clarifications Issued by CBIC
A. Communication of Order-in-Appeal – The Appellate Authority shall upload the Order-in-Appeal on the GST common portal. It shall also send the order electronically and physically to the Principal Commissioner/Commissioner having jurisdiction over the Common Adjudicating Authority (CAA).
B. Role of Commissioner Having Jurisdiction over the CAA – The Commissioner supervising the CAA shall examine the appellate order. He may obtain comments and inputs from the DGGI, wherever required. Thereafter, he shall forward his recommendations to the jurisdictional Commissioners of all taxable persons covered by the common adjudication order.
C. Jurisdictional Commissioner to Review Appellate Orders – That the Principal Commissioner/Commissioner having jurisdiction over the individual taxable person shall be the reviewing authority under section 112(3) of the CGST Act. The Commissioner having jurisdiction over the Common Adjudicating Authority is not the statutory reviewing authority.
D. Authority to File Departmental Appeal – Where the reviewing authority decides to challenge the appellate order, he may authorize a subordinate officer to file and pursue the departmental appeal before the GST Appellate Tribunal (GSTAT).
E. Separate Departmental Appeals for Each Taxpayer – Where a common adjudication order involves multiple taxpayers, separate departmental appeals must be filed in respect of each taxable person. Each jurisdictional Commissionerate will independently decide whether the appellate order warrants challenge before the GSTAT.
F. Jurisdiction of GSTAT Bench- The departmental appeal shall be filed before the GSTAT Bench having territorial jurisdiction over the location of the taxable person/noticee. It shall not be filed before the GSTAT Bench having jurisdiction over the Commissionerate of the Common Adjudicating Authority.
G. Post-Filing Intimation – After filing the appeal, the jurisdictional Commissioner shall intimate the Commissioner having jurisdiction over the CAA and provide a copy of the appeal. If no appeal is proposed, the reviewing authority shall also communicate that decision to the Commissioner supervising the CAA.
Complete Cirular can be accessed at https://taxo.online/wp-content/uploads/2026/07/Circular-No-256-02-2026.pdf
