In a recent case, the Orissa High Court disposed of Central Goods and Services Tax ( CGST ) Tax, 2017 case post-revision in monetary limit in appeal filing. The monetary limits for filing appeals by the tax authorities have been raised at various appellate levels, such as the Commissioner (Appeals), the Appellate Tribunal, and High Courts.
The revenue filed the petition against the respondent assessee, TRL Krosaki Refractories. Mr. Satapathy, advocate, Senior Standing Counsel appeared on behalf of appellant-revenue and submitted application has been filed with prayer to permit appellant to withdraw the appeal. It has not yet been admitted.
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The Central Goods and Services Tax (CGST) Act, 2017 includes provisions for appeals to higher authorities in cases of disputes. In recent years, the government has periodically revised the monetary limits for filing appeals in an effort to reduce litigation, unclog the legal system, and allow tax authorities to focus on high-value cases.
The monetary limits for filing appeals by the tax authorities have been raised at various appellate levels, such as the Commissioner (Appeals), the Appellate Tribunal, and High Courts. The latest revisions aim to reduce the number of smaller-value cases that reach higher appellate levels, streamlining the appeals process and allowing tax authorities to prioritize significant cases.
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With the revised limits, cases falling below the new thresholds may be dropped, withdrawn, or dismissed by the appellate authorities. This helps in reducing the existing backlog and allows faster disposal of cases with larger stakes.
For new cases, authorities are more selective, focusing on appeals with significant tax amounts, meaning only cases above the revised monetary limits are likely to be pursued. By raising the monetary limit, the government aims to minimize litigation costs and focus resources on high-stakes cases. This helps improve efficiency and reduces the burden on both tax authorities and taxpayers, allowing for quicker resolution of material disputes.
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With stricter limits on appeals, there is an increased focus on alternative dispute resolution mechanisms, such as advance rulings, mediation, and conciliation. Taxpayers and authorities are encouraged to settle disputes without resorting to prolonged litigation, benefiting both parties.
A division bench of Justice Arindam Sinha and Justice M.S. Sahoo observed that the application has been made pursuant to upward revision in monetary limit for filing appeal by the department. As such tax effect of the appeal is less than the raised limit. The application is allowed and disposed of. The appeal is dismissed.
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