Section 113 of the Central Goods and Services Tax Act, 2017 deals with the orders passed by the Goods and Services Tax Appellate Tribunal (GSTAT) after hearing an appeal. It explains the powers of the Appellate Tribunal while deciding an appeal, the circumstances in which an appeal may be adjourned, the mechanism for rectification of an error apparent on the face of the record, the expected time for disposal of appeals, communication of Tribunal orders and the finality of those orders.
The provision is an important part of the GST appellate framework because the Appellate Tribunal functions as the second appellate level after the Appellate Authority or Revisional Authority. The GST Council describes GSTAT as the second appellate authority within the GST dispute-resolution structure.
Section 113 currently contains six sub-sections. The Tribunal can confirm, modify or annul the order appealed against, or remand the matter to the Appellate Authority, Revisional Authority or original adjudicating authority. It must provide the parties an opportunity of being heard before passing its order. The section also contains provisions relating to adjournments, rectification, disposal within one year as far as possible, communication of orders and the finality of Tribunal orders subject to appeals to the High Court and Supreme Court.
What Is Section 113 of the CGST Act?
Section 113 is titled “Orders of Appellate Tribunal.”
It governs what the Appellate Tribunal can do after considering an appeal filed before it under Section 112.
The Tribunal is not restricted to simply accepting or rejecting the order appealed against. Depending on the facts and law involved, it can:
- confirm the order;
- modify the order;
- annul the order;
- remand the case for fresh adjudication or decision; or
- issue appropriate directions while remanding the matter.
The Tribunal must first give the parties to the appeal an opportunity of being heard.
Section 113(1) – Powers of Appellate Tribunal While Passing an Order
Section 113(1) provides that the Appellate Tribunal may, after giving the parties to the appeal an opportunity of being heard, pass such orders as it thinks fit.
The Tribunal may:
- confirm the decision or order appealed against;
- modify the decision or order appealed against;
- annul the decision or order appealed against; or
- refer the case back to the Appellate Authority, Revisional Authority or original adjudicating authority for fresh adjudication or decision.
Where the case is remanded, the Tribunal may give directions and may require additional evidence to be considered where necessary.
This gives the Appellate Tribunal considerable authority to determine the dispute on the basis of the record and applicable law.
Opportunity of Being Heard
An important safeguard under Section 113(1) is the requirement that the parties to the appeal must be given an opportunity of being heard before the Tribunal passes its order.
This means that the Tribunal cannot simply decide the appeal without allowing the parties an opportunity to present their case in accordance with the applicable procedure.
A hearing may involve:
- oral submissions;
- written submissions;
- examination of documents;
- arguments concerning tax liability;
- arguments concerning input tax credit;
- interpretation of GST provisions;
- factual explanations; and
- responses to the submissions of the other side.
The exact procedure is governed by Section 111, the applicable rules and the Tribunal’s procedural directions.
What Does “Confirm” Mean?
When the Appellate Tribunal confirms the order appealed against, it essentially agrees with the decision under challenge to the extent confirmed.
Example
Suppose an Appellate Authority confirms a GST demand of ₹10 lakh.
The taxpayer appeals to the Appellate Tribunal.
After examining the matter, the Tribunal finds that the order is legally and factually sustainable.
The Tribunal may confirm the order.
The consequences then follow from the Tribunal’s order, subject to any further statutory appeal available under the Act.
What Does “Modify” Mean?
The Tribunal can also modify the order appealed against.
Modification means that the Tribunal changes the decision in some respect rather than simply confirming or completely annulling it.
Example
Suppose an order determines:
- tax: ₹10 lakh;
- interest: applicable amount; and
- penalty: ₹5 lakh.
After considering the appeal, the Tribunal may find that part of the demand or penalty requires alteration.
It may therefore modify the order to the extent permitted by the facts, law and issues before it.
The exact effect depends on the Tribunal’s findings and the relief sought in the appeal.
What Does “Annul” Mean?
The Tribunal may also annul the decision or order appealed against.
Annulment means that the impugned decision is set aside rather than being confirmed.
Example
Suppose a taxpayer challenges an order on the ground that the demand was legally unsustainable.
If the Tribunal agrees with the taxpayer’s challenge and finds that the order cannot stand, it may annul the order in accordance with Section 113(1).
The precise legal consequences depend on the Tribunal’s order and the nature of the dispute.
Power to Remand the Case
Section 113(1) also allows the Appellate Tribunal to refer the case back to:
- the Appellate Authority;
- the Revisional Authority; or
- the original adjudicating authority.
The Tribunal may issue directions for a fresh adjudication or decision and may require additional evidence to be considered where necessary.
This is commonly referred to as a remand.
Why Can the Tribunal Remand a Case?
A remand may become relevant where the Tribunal finds that the matter requires further examination.
For example:
- important evidence was not considered;
- relevant facts require verification;
- a particular issue was not properly examined;
- additional evidence is necessary; or
- the matter needs fresh adjudication in accordance with the Tribunal’s directions.
The Tribunal can therefore ensure that the dispute is properly examined rather than necessarily deciding every factual matter itself.
Additional Evidence After Remand
Section 113(1) specifically states that the Tribunal may refer the case back for fresh adjudication or decision after taking additional evidence, if necessary.
This is important because GST disputes can involve extensive documentary and factual material.
Additional evidence may become relevant where the Tribunal considers that the existing material is insufficient for properly deciding the matter or for carrying out the required fresh adjudication.
Section 113(2) – Adjournment of Appeal
Section 113(2) deals with adjournments.
The Appellate Tribunal may, where sufficient cause is shown, at any stage of the hearing:
- grant time to the parties or any of them; and
- adjourn the hearing.
However, the Tribunal must record the reasons for granting the adjournment in writing.
This means that an adjournment is not an automatic right.
The party requesting additional time should have sufficient cause for the request.
Maximum Three Adjournments
Section 113(2) contains an important limitation.
It provides that no such adjournment shall be granted more than three times to a party during the hearing of the appeal.
Therefore, a party cannot ordinarily expect unlimited adjournments.
The provision is intended to balance the need for adequate opportunity with the need for efficient disposal of appeals.
Example
Suppose a taxpayer’s appeal is being heard by the Tribunal.
The taxpayer requests an adjournment because an important document needs to be obtained.
If sufficient cause is shown, the Tribunal may grant time.
However, the statutory limit on adjournments to that party during the hearing must be kept in mind.
Reasons for Adjournment Must Be Recorded
Section 113(2) specifically requires reasons for granting an adjournment to be recorded in writing.
This provides transparency regarding why additional time was granted.
It also helps maintain a proper record of the proceedings.
Section 113(3) – Rectification of Error Apparent on the Face of the Record
Section 113(3) gives the Appellate Tribunal the power to amend an order passed under Section 113(1) for the purpose of rectifying an error apparent on the face of the record.
The error may be:
- noticed by the Tribunal on its own; or
- brought to the Tribunal’s notice by the Commissioner;
- Commissioner of State tax;
- Commissioner of Union territory tax; or
- the other party to the appeal.
The statutory period for bringing the error to the Tribunal’s notice is three months from the date of the order.
What Is an Error Apparent on the Face of the Record?
An error apparent on the face of the record is an error that can be identified from the record itself without requiring a complete reconsideration of the case on merits.
The rectification mechanism is therefore different from filing another appeal merely because a party disagrees with the Tribunal’s reasoning.
Simple Example
Suppose the Tribunal’s written order contains an obvious mathematical or clerical mistake that is apparent from the record.
Such an error may potentially be considered under Section 113(3).
The provision is not intended to provide a general mechanism for reopening the entire appeal merely because a party is dissatisfied with the decision.
Who Can Bring an Error to the Tribunal’s Notice?
Section 113(3) specifically identifies the persons who may bring the error to the Tribunal’s notice.
They include:
- the Commissioner;
- the Commissioner of State tax;
- the Commissioner of Union territory tax; and
- the other party to the appeal.
The Tribunal can also notice the error on its own accord.
Three-Month Time Limit for Rectification
The relevant error must be noticed by the Tribunal or brought to its notice within three months from the date of the order.
This is an important statutory limitation under Section 113(3).
Therefore, a party seeking rectification should not treat the provision as an open-ended remedy.
The application or request should be made within the prescribed statutory period.
Hearing Required for Adverse Rectification
Section 113(3) contains an important safeguard.
If the proposed amendment would have the effect of:
- enhancing an assessment;
- reducing a refund;
- reducing input tax credit; or
- otherwise increasing the liability of the other party,
the Tribunal cannot make the amendment unless that party has been given an opportunity of being heard.
This ensures that a rectification proceeding does not adversely affect a party without giving it an opportunity to respond.
Example of Adverse Rectification
Suppose the Tribunal’s original order allows a taxpayer a particular refund.
Later, an apparent error in the order is identified.
Correcting the error would reduce the taxpayer’s refund.
Under Section 113(3), the taxpayer must be given an opportunity of being heard before such an adverse amendment is made.
Section 113(4) – Disposal of Appeal Within One Year
Section 113(4) provides that the Appellate Tribunal shall, as far as possible, hear and decide every appeal within a period of one year from the date on which it is filed.
The expression “as far as possible” is important.
It indicates that the one-year period is a statutory target for disposal rather than wording that automatically means every appeal must necessarily be decided within one year regardless of circumstances.
The actual time taken can depend on:
- complexity of the dispute;
- volume of evidence;
- procedural issues;
- hearings;
- adjournments;
- remand requirements;
- constitution and functioning of the relevant Bench; and
- other circumstances affecting the proceeding.
Why Is the One-Year Period Important?
GST disputes can involve substantial tax amounts and may remain unresolved for extended periods.
Section 113(4) therefore establishes an expectation that appeals should, as far as possible, be heard and decided within one year from filing.
This provides a statutory benchmark for timely disposal of Tribunal appeals.
Section 113(5) – Communication of Tribunal Orders
Section 113(5) requires the Appellate Tribunal to send a copy of every order passed under Section 113 to specified persons and authorities.
The copy is sent to:
- the Appellate Authority;
- the Revisional Authority;
- the original adjudicating authority, as applicable;
- the appellant; and
- the jurisdictional Commissioner, Commissioner of State tax or Commissioner of Union territory tax.
This ensures that the Tribunal’s decision reaches the authorities responsible for giving effect to the order.
Why Is Communication of the Order Important?
Communication of an appellate order is important for several reasons.
It enables:
- the taxpayer to know the outcome;
- the department to implement the decision;
- the lower authority to take consequential action;
- the jurisdictional tax authority to update the demand position; and
- the parties to consider any further statutory remedy.
The communication requirement therefore forms an important part of the appellate process.
FORM GST APL-04 and Tribunal Orders
Rule 113 of the CGST Rules deals with the summary of orders of the Appellate Authority or Appellate Tribunal.
For an Appellate Tribunal order, the jurisdictional officer is required to issue a statement in FORM GST APL-04 clearly indicating the final amount of demand confirmed by the Tribunal.
The APL-04 mechanism helps communicate the financial effect of an appellate order and facilitates consequential action in the GST system.
Section 113(6) – Finality of Appellate Tribunal Orders
Section 113(6) provides that, except as provided in Section 117 or Section 118, orders passed by the Appellate Tribunal on an appeal shall be final and binding on the parties.
This means that the Tribunal is ordinarily the final fact-finding appellate forum within the GST framework, subject to the statutory right of appeal to the High Court and Supreme Court.
Final Does Not Mean No Further Appeal
The word “final” in Section 113(6) must be read together with Sections 117 and 118.
Section 117 provides for an appeal to the High Court in specified cases involving a substantial question of law.
Section 118 deals with appeals to the Supreme Court in the circumstances specified by that provision.
Therefore, a Tribunal order is final and binding within the meaning of Section 113(6), subject to the further appellate remedies expressly provided by law.
Section 113 and Section 112
Section 112 deals with appeals to the Appellate Tribunal.
Section 113 deals with orders passed after the Tribunal hears those appeals.
The two provisions therefore work together.
Section 112
Provides the mechanism for bringing a dispute before the Tribunal.
Section 113
Provides the framework for deciding the appeal and passing the Tribunal’s order.
A simplified sequence is:
Section 107 → First appeal
Section 108 → Revision
Section 112 → Appeal to GSTAT
Section 113 → Order of GSTAT
Section 117 → Appeal to High Court
Section 118 → Appeal to Supreme Court
Section 113 and Section 111
Section 111 deals with the procedure before the Appellate Tribunal.
It provides, among other things, that the Tribunal is not bound by the procedure laid down in the Code of Civil Procedure, 1908, but is guided by the principles of natural justice and the CGST Act and Rules. It also provides specified civil-court powers.
Section 113 then governs the order that the Tribunal passes after hearing the appeal.
Therefore:
Section 111 = Procedure before GSTAT
Section 113 = Order passed by GSTAT
Section 113 and Natural Justice
The requirement under Section 113(1) to provide the parties an opportunity of being heard is an important procedural safeguard.
It ensures that the Tribunal considers the submissions of the parties before deciding the appeal.
This is consistent with Section 111, which requires the Tribunal to be guided by the principles of natural justice.
Natural justice is particularly important where the Tribunal’s decision may affect:
- tax liability;
- interest;
- penalty;
- refund;
- input tax credit;
- fine; or
- other financial consequences.
Can the Tribunal Increase a Taxpayer’s Liability?
Section 113(1) gives the Tribunal broad power to pass an order on the appeal, including modifying the order appealed against.
However, the exercise of appellate powers must remain within the statutory framework and principles of natural justice.
Where an adverse change is proposed, the affected party must have the opportunity to be heard.
The specific hearing safeguard in Section 113(3) applies expressly to adverse rectification amendments.
The Tribunal’s order must also remain connected with the issues properly before it and the applicable statutory provisions.
Can the Tribunal Reduce a Demand?
Yes.
Where the Tribunal finds that the lower authority’s demand is not sustainable to the extent challenged, it can modify or annul the order in accordance with Section 113(1).
For example, the Tribunal may find that:
- part of the tax demand is not sustainable;
- a particular penalty is not justified;
- an ITC denial requires modification; or
- another component of the order requires alteration.
The actual relief depends on the facts, grounds of appeal and Tribunal’s findings.
Can the Tribunal Send the Case Back?
Yes.
Section 113(1) expressly permits the Tribunal to refer the case back to the:
- Appellate Authority;
- Revisional Authority; or
- original adjudicating authority.
The Tribunal can give directions for fresh adjudication or decision and may require additional evidence to be considered.
Example – Tribunal Remand
Suppose a taxpayer challenges a demand based on a complex set of transactions.
The Tribunal finds that an important factual issue was not properly examined by the original authority.
Instead of deciding the factual issue without adequate material, the Tribunal may remand the matter with appropriate directions for fresh adjudication.
The lower authority must then deal with the matter in accordance with the Tribunal’s directions and applicable law.
Can the Tribunal Correct Its Own Order?
Yes, but Section 113(3) provides a specific mechanism.
The Tribunal can amend its order under Section 113(1) to rectify an error apparent on the face of the record.
The error must be noticed by the Tribunal itself or brought to its notice by the specified persons within three months from the date of the order.
This is different from a regular appeal against the Tribunal’s order.
Difference Between Rectification and Appeal to High Court
A rectification under Section 113(3) is concerned with an error apparent on the face of the record.
An appeal to the High Court under Section 117 is based on the statutory requirement of a substantial question of law.
These are separate remedies and should not be confused.
Rectification
- Section 113(3)
- Error apparent on the face of the record
- Three-month statutory period
- Tribunal corrects its own order
High Court Appeal
- Section 117
- Substantial question of law
- Separate appellate proceeding
- High Court considers the statutory grounds for admission
Difference Between Section 113 and Section 117
| Basis | Section 113 | Section 117 |
|---|---|---|
| Subject | Orders of Appellate Tribunal | Appeal to High Court |
| Authority | GST Appellate Tribunal | High Court |
| Purpose | Decide Tribunal appeal | Examine specified substantial questions of law |
| Main outcome | Confirm, modify, annul or remand | High Court decision on appeal |
| Rectification | Section 113(3) | Not the same mechanism |
The Tribunal’s order is subject to the further appellate framework under Section 117 where the statutory requirements are satisfied.
Difference Between Section 113 and Section 118
Section 118 concerns appeals to the Supreme Court.
Section 113 is the provision under which the Tribunal passes its order.
Therefore, Section 113 is the decision-making provision at the Tribunal level, while Section 118 provides the subsequent Supreme Court appellate mechanism in specified cases.
Practical Example – Demand Confirmed by Tribunal
Suppose:
- original adjudicating authority confirms tax demand of ₹20 lakh;
- taxpayer files first appeal;
- Appellate Authority confirms the demand;
- taxpayer files appeal before GSTAT.
After hearing the parties, the Tribunal may:
- confirm the ₹20 lakh demand;
- modify the demand;
- annul the order; or
- remand the case for fresh adjudication,
depending on its findings.
If the Tribunal confirms the demand, the order is final and binding on the parties subject to Sections 117 and 118.
Practical Example – Tribunal Modifies ITC Demand
Suppose a taxpayer’s ITC of ₹15 lakh is denied by the lower authority.
The taxpayer appeals to GSTAT.
After examining the documents, the Tribunal finds that ₹5 lakh of the disputed ITC is admissible while the remaining amount is not.
The Tribunal may modify the impugned order accordingly, subject to the facts, grounds of appeal and applicable law.
Practical Example – Rectification of Clerical Error
Suppose the Tribunal passes an order but an obvious numerical error appears in the final calculation.
If the error is apparent from the record, the Tribunal may consider rectifying the order under Section 113(3), provided the statutory requirements are satisfied.
If the proposed correction would adversely affect the other party by increasing its liability, that party must first be given an opportunity of being heard.
Practical Example – Adjournment
Suppose a taxpayer’s authorised representative requires additional time to obtain a document that is relevant to the appeal.
The representative requests an adjournment and provides sufficient cause.
The Tribunal may grant additional time and adjourn the hearing, recording reasons in writing.
However, Section 113(2) limits such adjournments to three times for a party during the hearing of the appeal.
Practical Importance of Section 113 for Taxpayers
A taxpayer involved in a GST appeal before the Tribunal should understand that the Tribunal’s order can have substantial consequences.
The taxpayer should therefore:
- Carefully review the original adjudication order.
- Review the Appellate Authority or Revisional Authority order.
- Identify the precise grounds of appeal.
- Maintain all relevant documents.
- Submit evidence within the applicable procedural framework.
- Attend hearings when required.
- Avoid unnecessary adjournment requests.
- Review the Tribunal’s final order carefully after it is issued.
- Check whether any apparent error exists within the statutory rectification period.
- Consider further appellate remedies where legally available.
Importance of the Tribunal’s Written Order
A Tribunal order is important not merely because it determines the immediate dispute.
It may also affect:
- the amount recoverable from the taxpayer;
- refund entitlement;
- input tax credit;
- interest;
- penalty;
- future proceedings;
- implementation by the jurisdictional officer; and
- further appeal.
The order should therefore be carefully reviewed after communication.
Key Features of Section 113 at a Glance
| Sub-section | Main provision |
|---|---|
| Section 113(1) | Tribunal may confirm, modify, annul or remand the order after hearing the parties |
| Section 113(2) | Adjournment for sufficient cause; reasons must be recorded; maximum three adjournments to a party |
| Section 113(3) | Rectification of error apparent on the face of the record within three months |
| Section 113(4) | Appeal should, as far as possible, be heard and decided within one year |
| Section 113(5) | Copies of orders must be sent to specified authorities and parties |
| Section 113(6) | Tribunal orders are final and binding subject to Sections 117 and 118 |
These provisions collectively establish how a GSTAT appeal is concluded and how its order operates within the GST appellate structure.
Important Points to Remember About Section 113
The major points of Section 113 are:
- Section 113 deals with orders of the Appellate Tribunal.
- The Tribunal must give the parties an opportunity of being heard before passing an order.
- The Tribunal may confirm the decision or order appealed against.
- It may modify the decision or order.
- It may annul the decision or order.
- It may remand the case to the Appellate Authority.
- It may remand the case to the Revisional Authority.
- It may remand the case to the original adjudicating authority.
- It may give directions for fresh adjudication or decision.
- Additional evidence may be considered where necessary.
- The Tribunal may grant an adjournment if sufficient cause is shown.
- Reasons for granting an adjournment must be recorded in writing.
- A party cannot ordinarily receive more than three such adjournments during the hearing.
- The Tribunal may rectify an error apparent on the face of the record.
- The error may be noticed by the Tribunal itself.
- The error may also be brought to its notice by specified tax authorities or the other party to the appeal.
- The statutory period for bringing the error to notice is three months from the date of the order.
- An adverse rectification affecting assessment, refund, ITC or liability requires an opportunity of hearing.
- Appeals should, as far as possible, be heard and decided within one year from filing.
- Copies of Tribunal orders must be sent to the specified authorities and parties.
- Tribunal orders are final and binding on the parties subject to Sections 117 and 118.
- Section 117 provides the statutory framework for appeal to the High Court.
- Section 118 deals with appeals to the Supreme Court.
- Section 113 should be read together with Section 111 on Tribunal procedure and Section 112 on appeals to the Tribunal.
👉 Read More → Section 114 – Financial and administrative powers of President
Conclusion
Section 113 of the CGST Act is the provision that governs how the Appellate Tribunal concludes an appeal and passes its order. It gives the Tribunal broad powers to confirm, modify or annul the order under challenge and also permits the Tribunal to remand a case to the Appellate Authority, Revisional Authority or original adjudicating authority where fresh adjudication or additional evidence is necessary.
An important protection under Section 113(1) is the requirement that the parties to the appeal must be given an opportunity of being heard before the Tribunal passes its order. The section also regulates adjournments by requiring sufficient cause, written reasons and limiting such adjournments to three times for a party during the hearing.
Section 113(3) provides a separate mechanism for correcting an error apparent on the face of the record. The Tribunal can rectify such an error on its own or when it is brought to its notice by the specified authorities or the other party within three months from the date of the order. Where the correction would increase another party’s liability, reduce a refund or ITC, or enhance an assessment, an opportunity of being heard is mandatory before the adverse amendment is made.
The section also states that, as far as possible, every appeal should be heard and decided within one year from the date on which it is filed. After an order is passed, copies must be sent to the relevant Appellate Authority, Revisional Authority or original adjudicating authority, the appellant and the jurisdictional tax authorities.
Finally, Section 113(6) provides that orders passed by the Appellate Tribunal on an appeal are final and binding on the parties, subject to the further appellate provisions contained in Sections 117 and 118. Thus, the Tribunal occupies an important position in the GST dispute-resolution structure, while the law still provides further remedies before the High Court and Supreme Court in the circumstances specified by the Act.
For taxpayers, Section 113 highlights the importance of presenting complete evidence and clear legal grounds before GSTAT, responding properly during hearings and carefully reviewing the final Tribunal order. Where an apparent error exists, the three-month rectification mechanism should also be kept in mind.
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