The Central Board of Indirect Taxes and Customs (CBIC) has issued Circular No. 256/02/2026-GST dated 25 July 2026, clarifying the procedure for filing departmental appeals before the Goods and Services Tax Appellate Tribunal (GSTAT) where the Order-in-Original has been passed by a Common Adjudicating Authority (CAA) in cases investigated by the Directorate General of GST Intelligence (DGGI).
The circular provides clarity on the reviewing authority, the authority responsible for filing departmental appeals, and the appropriate GSTAT Bench before which such appeals should be filed. It has been issued to ensure uniform implementation of the provisions of the CGST Act across the country.
Key Highlights
- Circular No.: 256/02/2026-GST
- Circular Date: 25 July 2026
- Issued By: Central Board of Indirect Taxes and Customs (CBIC)
- Subject: Clarification regarding filing of departmental appeals before GSTAT in DGGI Common Adjudication cases
- Applicable To: Cases where Orders-in-Original have been passed by a Common Adjudicating Authority (CAA)
- Relevant Provision: Section 112 of the CGST Act, 2017
- Purpose: To provide a uniform procedure for review and filing of departmental appeals before GSTAT.
What Does the Circular Provide?
The CBIC has clarified the procedure to be followed when an appellate authority passes an order arising from an Order-in-Original issued by a Common Adjudicating Authority in DGGI cases.
The circular provides that:
- The appellate authority shall upload the Order-in-Appeal on the common portal and also send a copy to the Commissioner having jurisdiction over the Common Adjudicating Authority.
- The Commissioner having jurisdiction over the Common Adjudicating Authority shall examine the order and obtain comments from DGGI, wherever necessary, before forwarding recommendations to the jurisdictional Commissioners of the respective taxpayers.
- The jurisdictional Commissioner of each taxable person shall act as the reviewing authority under Section 112(3) of the CGST Act.
- If a departmental appeal is considered necessary, the reviewing authority may authorize a subordinate officer to file and pursue the appeal before the GSTAT.
- Separate departmental appeals shall be filed for each taxable person before the GSTAT Bench having territorial jurisdiction over that particular taxpayer.
- After filing the appeal, the jurisdictional Commissioner shall inform the Commissioner having jurisdiction over the Common Adjudicating Authority and provide a copy of the appeal.
Why is this Circular Important?
Prior to this clarification, field formations had raised doubts regarding:
- Who would act as the reviewing authority in Common Adjudicating Authority cases.
- Which Commissionerate should file the departmental appeal.
- Which GSTAT Bench would have jurisdiction to hear such appeals.
The circular resolves these procedural issues and establishes a uniform mechanism for handling departmental appeals arising from DGGI investigations adjudicated by a Common Adjudicating Authority. This will help ensure consistency in litigation management across different Commissionerates.
Procedure Prescribed by CBIC
The circular lays down the following sequence:
- Order-in-Appeal is communicated to the Commissioner having jurisdiction over the Common Adjudicating Authority.
- Comments are obtained from DGGI, wherever required.
- Recommendations are forwarded to jurisdictional Commissioners of the concerned taxpayers.
- The jurisdictional Commissioner reviews the order under Section 112(3).
- Separate departmental appeals are filed before the appropriate GSTAT Bench having territorial jurisdiction over each taxpayer.
- Intimation regarding filing or non-filing of appeal is sent to the Commissioner having jurisdiction over the Common Adjudicating Authority.
Conclusion
Circular No. 256/02/2026-GST provides much-needed procedural clarity regarding departmental appeals before the GST Appellate Tribunal in cases where Orders-in-Original have been passed by a Common Adjudicating Authority in DGGI investigations.
By clearly identifying the reviewing authority, the authority responsible for filing appeals, and the jurisdiction of the GSTAT Bench, the circular ensures a standardized approach for departmental litigation under the GST regime.
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Official PDF: https://taxinformation.cbic.gov.in/view-pdf/1003335/ENG/Circulars
