The Central Board of Indirect Taxes and Customs (CBIC) has issued Circular No. 256/02/2026-GST dated 25 July 2026 (‘the Circular’) to clarify the procedure for filing departmental appeals before the Goods and Services Tax Appellate Tribunal (GSTAT) against orders passed by the first appellate authority.
The Circular specifically deals with cases where the Orders-in-Original have been issued by a Common Adjudicating Authority (CAA) in matters investigated by the Directorate General of GST Intelligence (DGGI).
Key aspects of the clarification is summarised below:
Who will be the reviewing authority in respect of such orders of appellate authority in CAA cases?
The jurisdictional Principal Commissioner/ Commissioner of the concerned taxable person/ noticee shall be the reviewing authority under Section 112(3) of the Central Goods and Services Tax Act. The Commissioner having jurisdiction over the CAA may obtain comments from the DGGI and share recommendations with the jurisdictional Commissioners of the respective taxpayers
Which jurisdictional authority will be required to file an appeal before the GSTAT in such CAA cases?
Where the reviewing authority is of the view that an appeal should be filed, it may authorise a subordinate officer to file and pursue the appeal before the GSTAT. The appeal shall be filed by the jurisdictional CGST Commissionerate of the concerned taxable person/ noticee
Which GSTAT bench will have jurisdiction to hear departmental appeals in CAA cases i.e., GSTAT having jurisdiction over CAA Commissionerate or Commissionerate as per the location of taxpayer?
The Circular clarifies that separate departmental appeals are required to be filed in respect of each taxable person/noticee covered under a common adjudication order. Each appeal is required to be filed before the GSTAT having territorial jurisdiction over the respective taxable person/noticee and not before the GSTAT having jurisdiction over the CAA.
Our Comments
The Circular lays down a uniform procedure for filing departmental appeals before the GSTAT in cases adjudicated by a CAA. It clarifies the reviewing authority, the jurisdictional Commissionerate responsible for filing the appeal, and the appropriate GSTAT bench, thereby eliminating procedural uncertainty for the Department. Most importantly, it clarifies that where a common adjudication order involves multiple taxpayers, each taxpayer may be required to defend the departmental appeal separately before the GSTAT having jurisdiction over its respective Commissionerate.