The Central Board of Indirect Taxes and Customs (CBIC) has issued Circular providing long-awaited clarity on the procedure to be followed by the tax department while filing appeals before the Goods and Services Tax Appellate Tribunal (GSTAT) against orders passed by appellate authorities in cases originally adjudicated by a Common Adjudicating Authority (CAA) in investigations conducted by the Directorate General of GST Intelligence (DGGI).
The clarification resolves practical uncertainties that had arisen following the establishment of Common Adjudicating Authorities with all-India jurisdiction for adjudicating DGGI cases. It specifies the reviewing authority, identifies the Commissionerate responsible for filing departmental appeals, and determines the appropriate GSTAT Bench before which such appeals must be instituted.
To facilitate centralized adjudication of DGGI investigations, the Government had empowered specified Additional and Joint Commissioners as Common Adjudicating Authorities through amendments to Notification No. 02/2017-Central Tax. Subsequent circulars laid down procedures for assigning show cause notices and handling adjudication by these authorities.
In June 2025, CBIC had also clarified the review mechanism and departmental appeals before the first appellate authority in cases decided by Common Adjudicating Authorities. However, ambiguity persisted regarding appeals before the newly constituted GST Appellate Tribunal after an appellate authority had decided such matters. Different field formations sought guidance on several procedural issues, prompting the issuance of the present circular.
The Board noted that officers had sought clarification on three significant issues: Which authority would act as the reviewing authority for orders passed by the appellate authority in Common Adjudicating Authority cases? Which jurisdictional Commissionerate would be responsible for filing departmental appeals before the GSTAT? Whether such appeals should be filed before the GSTAT Bench having jurisdiction over the Common Adjudicating Authority or before the Bench having territorial jurisdiction over the concerned taxable person.
After examining the matter in consultation with the Union Ministry of Law and Justice, CBIC has prescribed a uniform nationwide procedure to ensure consistency in handling departmental appeals before the GSTAT in DGGI matters adjudicated by Common Adjudicating Authorities.
The circular provides that once an appellate authority passes an order under Section 107 of the CGST Act arising out of an Order-in-Original passed by a Common Adjudicating Authority, the order must be uploaded on the common GST portal.
Additionally, the appellate authority is required to send both an electronic copy and a physical copy of the order to the Principal Commissioner or Commissioner having jurisdiction over the Common Adjudicating Authority.
The Commissioner having jurisdiction over the Common Adjudicating Authority will initially examine the appellate order. Where necessary, comments and inputs may be obtained from DGGI.
Thereafter, the Commissioner will forward the relevant comments and recommendations to the jurisdictional Principal Commissioners or Commissioners of every taxable person or noticee covered by the original adjudication order. This mechanism is intended to ensure that all concerned jurisdictional authorities receive a coordinated assessment before taking a decision on departmental appeals.
One of the most significant clarifications in the circular is that the jurisdictional Principal Commissioner or Commissioner of the concerned taxable person or noticee shall function as the reviewing authority under Section 112(3) of the CGST Act.
The reviewing authority must independently examine the legality and propriety of the appellate order while considering the recommendations received from the Commissioner having jurisdiction over the Common Adjudicating Authority.
If satisfied that the appellate order requires challenge before the GSTAT, the reviewing authority may authorize a subordinate officer to institute and pursue the departmental appeal before the Tribunal.
The circular also makes it clear that separate appeals must be filed for each taxable person or noticee covered by a Common Adjudicating Authority’s order.
Each appeal is to be filed by the jurisdictional CGST Commissionerate of the respective taxpayer rather than by the Commissionerate where the Common Adjudicating Authority is located.
CBIC has categorically clarified that departmental appeals should be filed before the GSTAT Bench having territorial jurisdiction over the taxable person or noticee, and not before the Bench exercising jurisdiction over the Common Adjudicating Authority.
This clarification is expected to remove procedural confusion in DGGI investigations involving taxpayers situated across multiple States and Commissionerates.
Once an appeal has been filed before the GSTAT, the jurisdictional Principal Commissioner or Commissioner must intimate the Commissioner having jurisdiction over the Common Adjudicating Authority and provide a copy of the appeal.
Similarly, where the reviewing authority concludes that no departmental appeal is warranted, that decision must also be communicated to the Commissioner having jurisdiction over the Common Adjudicating Authority.
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