2. Chapter XV- Demand & Recovery [Section 73 to 84]

3. Show Cause Notice/Dmand Notice
Section 73 –
deals with demand of tax in the cases where there is no invocation of fraud/suppression/mis-statement.
The Notice shall be issued at least three months prior to the time limit specified in sub- section (10) of Section 73 for issuance of order.
In terms of sub-section (10) of Section 73 the Adjudication authority shall pass the order with in 3 year from the due date of filing of annual return.
If tax is paid along with interest before issuance of SCN or within thirty days of issue of show cause notice, no penalty shall be payable and all proceedings in respect of the said notice shall be deemed to be concluded.
Penalty leviable under section 73 is 10% of the tax amount

4. Show Cause Notice/Dmand Notice
Section 74 –
deals with demand of tax in the cases where there is invocation of fraud/suppression/mis- statement.
The Notice shall be issued at least Six months prior to the time limit specified in sub-section (10) of Section 74 for issuance of order.
In terms of sub-section (10) of Section 74 the Adjudication authority shall pass the order with in 5 year from the due date of filing of annual return.
If tax is paid along with interest and 15% of tax amount as penalty before issue of show cause notice then all proceedings in respect of the said notice shall be deemed to be concluded
If tax is paid along with interest and 25% of tax amount as penalty within thirty days of issue of show cause notice then all proceedings in respect of the said notice shall be deemed to be concluded
Where any person served with an order pays the tax along with interest payable thereon under section 50 and a penalty equivalent to fifty percent. of such tax within thirty days of communication of the order, all proceedings in respect of the said notice shall be deemed to be concluded.

5. General Provisions Related to determination of Tax
Section 75 –
Where any Appellate Authority or Appellate Tribunal or court concludes that the notice issued under sub-section (1) of section 74 is not sustainable for the reason that the charges of fraud or any wilful-misstatement or suppression of facts to evade tax has not been established against the person to whom the notice was issued, the proper officer shall determine the tax payable by such person, deeming as if the notice were issued under sub-section (1) of section 73.
If any order is required to be issued in pursuance of the direction of the Appleate authority or Tribunal or a Court such order shall be issued within two years from the date of communication of the said direction.
no such adjournment shall be granted for more than three times to a person during the proceedings.
The adjudication proceedings shall be deemed to be concluded, if the order is not issued within three years as provided for in sub-section (10) of section 73 or within five years as provided for in sub-section (10) of section 74.

6. Demand and Recovey Section 78 – initiation of recovery proceedings
Any amount payable by a taxable person in pursuance of an order passed under this Act shall be paid by such person within a period of three months from the date of service of such order failing which recovery proceedings shall be initiated
Section 80 – Payments In Installments
On an application filed by a taxable person, the Commissioner may, for reasons to be recorded in writing, extend the time for payment or allow payment of any amount due under this Act, other than the amount due as per the liability self-assessed in any return, by such person in monthly installments not exceeding twenty four, subject to payment of interest under section 50 and subject to such conditions and limitations as may be prescribed:

7. Chapter XVIII- Appeals and Revision [Section 107 to 121]

8. Adjudication
The Adjudication is a quasi-judicial process of resolving a ‘lis’ or a dispute between the taxpayer and the department.
The quasi – judicial authority who adjudicates such dispute is called “Adjudicating authority” and the order passed by such adjudicating authority is called “Order-In- Original”
The term “Adjudicating authority” is defined under section 2(4) of the CGST Act as, “adjudicating authority” means any authority competent to pass any order or decision under this Act, but does not include the Board, the Revision Authority, Authority for Advance ruling, Appellate Authority for Advance Ruling, the First Appellate Authority and the Appellate Tribunal”

9. Chapter XVIII- Appeals and Revision [Section 107 to 121]

10. Adjudication
The Adjudication is a quasi-judicial process of resolving a ‘lis’ or a dispute between the taxpayer and the department.
The quasi – judicial authority who adjudicates such dispute is called “Adjudicating authority” and the order passed by such adjudicating authority is called “Order-In- Original”
The term “Adjudicating authority” is defined under section 2(4) of the CGST Act as, “adjudicating authority” means any authority competent to pass any order or decision under this Act, but does not include the Board, the Revision Authority, Authority for Advance ruling, Appellate Authority for Advance Ruling, the First Appellate Authority and the Appellate Tribunal”

11. Revisionary powers: (Sec 108)
The Revisionary Authority may on his own motion or upon information received by him or on request of Commissioner of State tax or Union territory tax may call for the examination of the record of any proceeding under this Act, and if he considers that any decision or order passed under this Act by any officer subordinate to him is erroneous in so far as it is prejudicial to the interest of the revenue, he may, if necessary, stay the operation of such decision or order for such period as he deems fit and after giving the person concerned an opportunity of being heard and after making such further inquiry as may be necessary, pass such order, as he thinks just and proper, including enhancing or modifying or annulling the said decision or order
The revisionary authority shall not exercise its powers if :
the order has been subject to an appeal before First Appellate authority, Tribunal, High Court, or Supreme Court
The period for first appeal has not been expired or more than three years have expired after the passing of the decision or order sought to be revised.

12. Revisionary powers : Cont…..
However, the revisionary authority may pass order on the such issue which has not been raised or decided in appeal, before the expiry of 1 year from the date of order in such appeal or before the expiry of 3 year from the date of the order

13. Appeal to First Appellate Authority [Sec 107]
WHO CAN FILE THE APPEAL :
Any person being aggrieved with decision or order of Adjudicating authority may prefer an appeal before the First Appellate Authority.
The Commissioner may call and examine the records of adjudication proceedings (called on own motion or upon the request of the Sate Tax commissioner or Union territory tax commissioner) to satisfy himself as to the legality or propriety of the said decision or order and may, by order, direct any officer subordinate to him to file an appeal against the said order.
TIME LIMIT FOR FILING THE APPEAL
3 months form the date of communication of Order – for Assessee
6 months form the date of communication of Order – for Department
Above said period may be extended by1 month if sufficient cause for such delay in filing is established.

14. Appeal to First Appellate Authority: cont..
PROCEDURE FOR FILING THE APPEAL
An appeal to appellate authority shall be filed in form GSTAPL-01 electronically. Thereafter a provisional acknowledgement shall be issued to the appellant immediately
The hard copy of the appeal in triplicate along with the supporting documents shall be submitted with the department with in 7 day of filing of appeal online.
If hard copy of appeal is submitted beyond the 7 days, the date of submissions of hard copy shall be the date of filing of the appeal.
Appeal shall be entertained only if :
the admitted amount of tax, interest and penalty arising from the order appealed against, has been paid.
A sum of 10% of the tax amount in dispute.

15. Appeal to First Appellate Authority: cont..
TIME LIMIT FOR DECIDING THE APPEAL
First appellate authority to hear and decide the appeal, wherever possible, within a period of 1 year from the date of filing excluding the period of stay if any ordered by Court or Tribunal.
Maximum 3 adjournment’s can be granted.

16. Comparative Analysis with Existing Regime
First Appellate Authority
Existing Regime
GST Regime
Statutory Provisions
Section 84 & 85 of the Finance Act, 1994 and Section 35 of the CEA, 1944
Section 107 of CGST/SGST Act
Time period for filing appeal
In Central Excise:-
60 days from the date of communication of order I
Service Tax:-
2 Months from the date of receipt of the decision/ order
3 months of the date of communication of order
Extension of Time period for filing appeal
Can be extended by a further period of thirty days (excise)/ 1 month (service tax) by Commissioner (Appeals) on sufficient cause being shown.
Can be extended by a further period of 1month on sufficient cause being shown.
Quantum of pre-deposit for filing appeal
7.5% of the duty, in case where duty or duty and penalty are in dispute; or penalty, where such penalty is in dispute (aggregate of all penalties imposed)
10 per cent of the amount in dispute. Amount in dispute shall include tax, interest, fine, fee and penalty.

17. GST Appellate Tribunal
CONSTITUTION OF GST APPELLATE TRIBUNAL (Sec 109)
The Central Government shall on the recommendation of the GST Council constitute Goods and Service Tax Appellate Tribunal (Appellate Tribunal)
The Appellate Tribunal shall be exercisable by the National Bench (Regional Benches) and benches and State bench and benches (Area Benches).
The National Bench or Regional bench shall be situated at Delhi which shall be presided over by the President and shall consist one technical member (Center) and one technical member(sate)
State or Area Bench shall consist of a Member (Judicial), Technical Members (Center) and Technical Members (State).
JURISDICTION TO HEAR APPEALS
National Bench or Regional Benches : the case where one of the issue involved relates to the place of the place of supply.
State Bench or Area Benches : all the matters except the cases where one of the issue involved relates to the place of supply

18. Appeal to GST Appellate Tribunal
WHO CAN FILE THE APPEAL :
Any person being aggrieved with decision or order of First Appellate Authority or Revisionary Authority may prefer an appeal before the GST Appellate Tribunal.
The Commissioner may call and examine the records of Appellate Authority or Revisionary Authority (called on own motion or upon the request of the Sate Tax commissioner or Union territory tax commissioner) to satisfy himself as to the legality or propriety of the said decision or order and may, by order, direct any officer subordinate to him to file an appeal against the said order.
TIME LIMIT FOR FILING THE APPEAL
3 months form the date of communication of Order in Appeal – for Assessee
6 months form the date of communication of Order in Appeal – for Department
45 Days for filing the cross objection by the respondent from the date of receipt of File
Above said period may be extended by 3 month in case of Asssesee Appeal and 45 days in case of cross objection, if sufficient cause for such delay in filing is established.

19. Appeal to GST Appellate Tribunal : cont..
PROCEDURE FOR FILING THE APPEAL
An appeal to appellate authority shall be filed in form FORM GST APL-05, electronically. Thereafter a provisional acknowledgement shall be issued to the appellant immediately
The hard copy of the appeal in quintuplicate along with the supporting documents shall be submitted with the department with in 7 day of filing of appeal online. The Acknowledgement shall be issued in FORM GST APL-02 by the registrar
If hard copy of appeal is submitted beyond the 7 days, the date of submissions of hard copy shall be the date of filing of the appeal.
The A memorandum of cross-objections shall be filed in quintuplicate to the Registrar in FORM GST APL-06
Appeal shall be entertained only if :
the admitted amount of tax, interest and penalty arising from the order appealed against, has been paid.
A sum of 25% of the tax amount in dispute.

20. Comparative Analysis with Existing Regime
Appeal to Appellate Tribunal
Existing Regime
GST Regime
Statutory Provisions
Section 86 of the Finance Act, 1994 and Section 35B of the CEA, 1944
Section 112 of CGST Act
Time period for filing appeal
In Central Excise/ Service Tax:-
3 Months from the date of receipt of the order
3 months of the date of communication of order
Power condone delay in filing appeal
No limit – if sufficient cause shown for such delay
Maximum 3 months - if sufficient cause shown for such delay
Quantum of pre-deposit for filing appeal
If the appeal is filed against the O-I-O passed by the Principal Commissioner/ Commissioner /ADG (adjudication) DRI/DGCEI:
7.5% of the duty and/or penalty
If the appeal is filed against the O-I-A passed by the Commissioner (Appeals):
10% of the duty and/ or penalty
25 % of the amount in dispute. Amount in dispute shall include tax, interest, fine, fee and penalty.

21. Orders of Appellate Tribunal
The Appellate Tribunal may, after giving the parties to the appeal an opportunity of being heard, pass such orders thereon as it thinks fit, confirming, modifying or annulling the decision or order appealed against or may refer the case back to the First Appellate Authority or to the original adjudicating authority, with such directions as it may think fit, for a fresh adjudication or decision, as the case may be, after taking additional evidence, if necessary.
Maximum 3 adjournment will be allowed.
The Appellate Tribunal shall, where it is possible to do so, hear and decide every appeal within a period of one year from the date on which it is filed.
INTEREST ON DELAYED REFUND OF PRE -DEPOSIT
Where an amount deposited by the appellant is required to be refunded consequent to any order of the First Appellate Authority or of the Appellate Tribunal, interest at the rate specified under section 56 shall be payable in respect of such refund from the date of payment of the amount till the date of refund of such amount.

22. Appeal to HC & SC APPEAL TO THE HIGH COURT
Cases involving substantial question of law to be admitted
Appeals to be filed within 180 days of the order
Appeal to the High Court shall be filed in FORM GST APL-08
APPEAL TO SUPREME COURT
against order of High Court
Against the order passed by the National or Regional Benches of GST Appellate Tribunal

23. Important Points To Be Considered
Check weather appeal lies
Carefully study the appealable order and find out the differences
Avoid filing frivolous appeals
Appeal against the penalty order can be filed even if the appeal against the demand has not been filed
Ascertain the authority before whom appeal lies
Ascertain the limitation period within which appeal is to be filed
File application for condonation, if there is any delay
Ensure weather authority passing the order had jurisdiction to pass the order

24. Important Points To Be Considered
Widest possible grounds should be taken in appeal - Alternative plea should be checked for being without prejudice the ground
Grounds should not be ambiguous
Statement of facts ought to be framed with clarity
Person filing should be eligible to file and sign the appeal
Ensure as to who is the respondent.
Ensure that fee for appeal is paid under appropriate head and sub head
Certified copy of challan evidencing payment of appeal fee and pre-deposit to be enclosed.

25. Drafting Of Grounds Of Appeal
Grounds of appeal should be simple, clear, precise, concise and without any ambiguity
In case of more than one issue involved in appeal, draft one separate ground for each issue as also preference / sequence of grounds should be decided
Nature of dispute and relief expected should be highlighted
Expected relief should be clearly mentioned
Avoid referring case laws while drafting grounds, if any
Avoid using long sentences

26. Effective Representation
To effectively communicate and represent the case of the assessee, should deeply study the facts of the case and provisions of statute before appearing
There should be proper index/covering with brief discussion of documents/details filed
Compile all the case laws relied and also quote the relevant Para(s) in the submissions/ synopsis.
Dress code for appearing before appellate authority should be strictly followed
Body language should be controlled
Should carefully listen to the appellate authority and wait for his turn

27. Chapter XIX- Offences and Penalties [Section 122 to 138]
Offences & Penalties

28. Penalty for certain specified offences
Offences (Section 122) (1)
Penalties
Making a supply without invoice or with false/ incorrect invoice;
Issuing an invoice without making supply
Not paying tax collected for a period exceeding three months
Not paying tax collected in contravention of the Act to the credit of the Govt. for a period exceeding 3 months from the due date
Non deduction or lower deduction of tax deducted at source or not depositing tax deducted at source under section 51 (2) of the Act
Non collection or lower collection of or nonpayment of tax collectible at source under section 52(3) ;
Availing/utilizing input tax credit without actual receipt of goods and/or services;
Fraudulently obtaining any refund;
Availing/distributing input tax credit by an Input Service Distributor in violation of Section 20 or relevant rules;
Furnishing false information or falsification of financial records or furnishing of fake accounts/ documents with intent to evade payment of tax;
Failure to register despite being liable to be registered;
Rs. 10,000 or Amount equal to Tax evaded or the tax not deducted /collected or short deducted/collected or deducted/collected but not paid to govt. or input credit availed of or passed on or distributed irregularly or the refund claimed fraudulently, whichever is higher

29. Penalty for certain specified offences
Offences (Section 122) (1) Cont…..
Penalties
Furnishing false information regarding mandatory fields for registration; Issuing an invoice without making supply
Obstructing or preventing any official in discharge of his duty;
Transporting goods without prescribed documents;
Suppressing turnover leading to tax evasion;
Failure to maintain accounts/documents in the manner specified in the Act or failure to retain accounts/documents for the period specified in the Act;
Failure to furnish information/documents required by an officer in terms of the Act/Rules or furnishing false information/documents during the course of any proceeding;
Supplying/transporting/storing any goods which he has reason to believe are liable to confiscation ;
Issuing invoice or document using GSTIN of another person;
Tampering/destroying any material evidence;
Disposing of /tampering with goods detained/ seized/attached under the Act.
Rs. 10,000 or Amount equal to Tax evaded or the tax not deducted /collected or short deducted/collected or deducted/collected but not paid to govt. or input credit availed of or passed on or distributed irregularly or the refund claimed fraudulently, whichever is higher

30. Penalty under section 122(2)
Offences (Section 122) (2)
Penalty
Any registered who supplies any goods or service both an which any tax has not been paid or short paid or erroneously refunded, or where input tax has been wrongly availed or utilized -
Other the fraud, collusion or any will full mis-statement – Rs. 10,000 or 10% of Tax whichever is higher
Case involving fraud, collusion or any will full mis-statement - Rs. 10,000 or Tax amount due whichever is higher.

31. Penalty prescribed for any person other than the taxable personsection 122(3)
Offences (Section 122) (3)
Penalties
Any person aids or abates any of the 21 offences as mentioned in clause 1 of Section 122
acquires possession of, or in any way concerns himself in transporting, removing, depositing, keeping, concealing, supplying, or purchasing or in any other manner deals with any goods which he knows or has reason to believe are liable to confiscation under this Act or the rules made thereunder
receives or is in any way concerned with the supply of, or in any other manner deals with any supply of services which he knows or has reason to believe are in contravention of any provisions of this Act or the rules made thereunder
fails to appear before the CGST/SGST officer, when issued with a summon for appearance to give evidence or produce a document in an enquiry;
fails to issue invoice in accordance with the provisions of this Act or rules made thereunder, or fails to account for an invoice in his books of account
Rs /-

32. General Penalty Offences Penalties Any person
who contravenes any of the provisions of this Act
or any rules made thereunder
for which no penalty is separately provided for in this Act,
Rs /-

33. Detention, Seizer and Release of Goods (Sec. 129)
Where any person –
transports any goods or stores such goods while they are in transit in violation of the provisions of this Act; or
or stores or keeps in stock goods or supplies goods
which have not been accounted for in the books or records maintained by him
in prescribed manner
all such goods and the conveyance used as a means of transport for carrying the said goods
shall be liable to detention, Seizer
release shall be made only after payment of applicable tax, interest and penalty equivalent to the tax amount. In case of exempted goods 2% of value of goods or Rs whichever less of owner came forward to make the payment
If the owner of goods not come forward the goods shall be released after payment of applicable tax along with the penalty equivalent to 50% of value of goods. In case of exempted goods 2% of value of goods or Rs whichever less of owner came forward to make the payment
or upon furnishing a security, equivalent to the amount of the applicable tax, interest and penalty
Provided that no tax, interest or penalty shall be determined without giving a notice to show cause and without giving the person a reasonable opportunity of being heard.

34. Confiscation of goods and levy of penalty (Sec. 130)
Where any person –
supplies any goods in contravention of any of the provisions of this Act or rules made thereunder leading to evasion of tax; or
does not account for any goods on which he is liable to pay tax under this Act; or
supplies any goods liable to tax under this Act without having applied for the registration; or
contravenes any of the provisions of this Act or rules made thereunder with intent to evade payment of tax; or
Uses any conveyance as a means of transport for carriage of goods in contravention of this Act
then all such goods shall be liable for confiscation and the person shall be liable for penalty under section 122

35. Confiscation of goods and levy of penalty (Sec. 130) : Cont…
Redemption fine in lieu of confiscation goods – Whenever confiscation of any goods is authorized by this Act, the CGST/SGST officer adjudging it shall give to the owner of the goods or, where such owner is not known, the person from whose possession or custody such goods have been seized, an option to pay in lieu of confiscation such fine as the said officer thinks fit. Such fine shall not exceed the market price of the goods confiscated, less the tax chargeable thereon
Redemption fine in lieu of confiscation of conveyance – where any such conveyance is used for carriage of goods and passengers for hire, the owner of vehicle shall be given option to pay a fine equal to the tax payable on the goods being transported.
No order of confiscation of goods and/or imposition of penalty shall be issued without giving giving the person a reasonable opportunity of being heard

36. Prosecution For Offences Under GST (Sec. 132)
Section 132 of the CGST codifies the major offences under the Act which warrant institution of criminal proceedings and prosecution. 12 such major offences have been listed as follows:
Making a supply without issuing an invoice or upon issuance of a false/incorrect invoice;
Issuing an invoice without making supply
Availing or utilizing credit of input tax without actual receipt of goods and/or services
Not paying tax collected for a period exceeding 3 months
Evade Tax, Fraudulently Avails Input Tax Credit or Obtaining any fraudulent refund;
Furnishing false information or falsification of financial records or furnishing of fake accounts/ documents with intent to evade payment of tax;
Obstructing or preventing any official in the discharge of his duty;
Dealing with goods liable to confiscation i.e. receipt, supply, storage or transportation of goods liable to confiscation;
Receiving/dealing with supply of services in contravention of the Act
Tempers with or destroys any material evidence or documents
Failing to supply any information required of him under the Act/Rules or supplying false information;
Attempting to commit or abetting the commission of any of the above 11 offences

37. Prosecution For Offences Under GST (Sec. 132)
Punishment prescribed on conviction of any offence mentioned under section 132(1)
Offence involving--
Punishment (Imprisonment
extending to--)
Tax evaded exceeding
Rs.500 lakh
5 years and fine
Tax evaded between Rs.200
lakh and Rs.500 lakh
3 years and fine
Tax evaded between Rs.100
lakh and Rs. 200 lakh
1 years and fine
Section 132 (2) provides that a second or any subsequent conviction for an offence in this section shall be punishable with imprisonment for a term that may extend to 5 years and a fine. However, no imprisonment for any of the offences shall be for a period less than six months

38. Cognizance of offences (Sec. 132)
Section 132 of CGST provides that no person shall be prosecuted for any offence without the prior sanction of the designated authority and no court inferior to that of a Magistrate of the First Class shall try any such offence.
all offences where the evasion of tax is less than Rs.5 crores shall be non-cognizable and bailable,
all offences where the evasion of tax exceeds Rs.5 crores shall be cognizable and non- bailable.

39. Presumption of Mens Rea
Sectionn 135 of the CGST Act presumes the existence of a state of mind (i.e. “culpable mental state” or mens rea) required to commit an offence if it cannot be committed without such a state of mind.
The term “Culpable mental state” defined as a state of mind where in :
the act is intentional;
the act and its implications are understood and controllable;
the person committing the act was not coerced and even overcomes hurdles to the act committed;
the person believes or has reasons to believe that the act is contrary to law.
The burden of proof is on the accused in this regard.
The fact of existence of mens rea is proved when Court believes it to exist beyond reasonable doubt.

40. Offence by Companies
Section 137 of the CGST/SGST ACT provides that every person who was in-charge of or responsible to a company for the conduct of its business shall, along-with the company itself, be liable to be proceeded against and punished for an offence committed by the company while such person was in-charge of the affairs of the company. If any offence committed by the company:
has been committed with the consent/ connivance of, or
is attributable to negligence of—
any officer of the company then such officer shall be deemed to be guilty of the said offence and liable

41. Compounding of Offences
As per section 138 of the CGST/SGST Act, any offence may upon payment of the prescribed (compounding) amount be compounded and such compounding is permissible either before or after the institution of prosecution other than the following:
Offences prescribed in clause (a) to (f) of sub-section (1) of S. 132 if the person charged with the offence had compounded earlier in respect of any of the said offences;
Aiding/abetting offences numbered 1 to 6 of the 12 major offences, if the person charged with the offence had compounded earlier in respect of any of the said offences;
Any offence (other than the above offences) under any SGST Act/IGST Act in respect of a supply with value exceeding Rs.1 crore, if the person charged with the offence had compounded earlier in respect of any of the said offences;
Any offence which is also an offence under NDPSA or FEMA or any other Act other than CGST/SGST;

42. Monetary Limit for Compounding of Offences
lower limit: greater of the following –
50% of tax involved, or
Rs.10,000
upper limit: greater of the following –
150% of tax involved or
Rs.30,000
Sub-section (3) of section 138 provides that on payment of compounding amount no further proceeding to be initiated under this Act and criminal proceeding already initiated shall stand abated.