Section 119 – Sums Due to Be Paid Notwithstanding Appeal, etc.

Section 119 of the Central Goods and Services Tax Act, 2017 deals with the payment of amounts that become due to the Government even when an appeal has been filed before the High Court or the Supreme Court.

The provision is important because filing a further appeal does not, by itself, change the amount payable under the order covered by Section 119. Where an order of the Appellate Tribunal or High Court results in an amount becoming due to the Government, that amount is payable in accordance with the order, notwithstanding that a further appeal has been preferred.

Section 119 applies at an important stage of the GST appellate framework. It follows the provisions dealing with appeals to the Appellate Tribunal, orders of the Appellate Tribunal, appeal to the High Court and appeal to the Supreme Court. The provision ensures that an amount determined to be payable under the specified appellate orders does not remain unpaid merely because the taxpayer has pursued a further appeal.

What Is Section 119 of the CGST Act?

Section 119 is titled:

“Sums due to be paid notwithstanding appeal, etc.”

The provision states that notwithstanding that an appeal has been preferred to the High Court or the Supreme Court, sums due to the Government as a result of:

• an order passed by the National or Regional Benches of the Appellate Tribunal under Section 113(1);
• an order passed by the State Bench or Area Benches of the Appellate Tribunal under Section 113(1); or
• an order passed by the High Court under Section 117,

shall be payable in accordance with the order so passed.

In simple terms:

Further appeal does not, by itself, make the amount determined under the specified order non-payable.

Purpose of Section 119

The GST appellate structure provides multiple levels of appeal.

A matter may proceed from an adjudicating authority to:

Appellate Authority → Appellate Tribunal → High Court → Supreme Court

The law therefore needs to address what happens to an amount that has been determined as payable while the dispute continues at a higher appellate level.

Section 119 provides the statutory answer.

If an order covered by the section determines that an amount is due to the Government, the amount remains payable according to that order even though the affected person has filed a further appeal before the High Court or Supreme Court.

Exact Scope of Section 119

Section 119 refers specifically to amounts due to the Government as a result of certain orders.

The section covers three categories:

Order	Provision
Order of National or Regional Bench of Appellate Tribunal	Section 113(1)
Order of State Bench or Area Bench of Appellate Tribunal	Section 113(1)
Order of High Court	Section 117

Where an amount is due to the Government as a result of one of these orders, Section 119 states that the amount shall be payable according to the order, notwithstanding a further appeal.

What Does “Notwithstanding That an Appeal Has Been Preferred” Mean?

The opening words of Section 119 are important.

The provision begins with:

“Notwithstanding that an appeal has been preferred to the High Court or the Supreme Court…”

This means that the mere filing of a further appeal does not, by itself, prevent the amount determined under the specified order from being payable.

For example, suppose the Appellate Tribunal passes an order determining that a taxpayer is required to pay a particular amount.

If the taxpayer subsequently files an appeal before the High Court, Section 119 provides that the amount due to the Government as a result of the Tribunal’s order remains payable in accordance with that order.

Similarly, where the High Court passes an order resulting in an amount becoming payable and the taxpayer subsequently approaches the Supreme Court, Section 119 continues to operate.

Section 119 Does Not Decide Whether an Appeal Is Maintainable

Section 119 does not deal with:

• whether an appeal can be filed;
• whether the appeal is within limitation;
• whether the High Court should admit an appeal;
• whether a substantial question of law exists;
• whether the Supreme Court grants leave; or
• the merits of the underlying tax dispute.

Those matters are governed by the relevant appellate provisions.

Section 119 deals specifically with the payment of sums due to the Government resulting from specified appellate orders.

Section 119 and Section 113

Section 113 deals with orders of the Appellate Tribunal.

An order of the Appellate Tribunal may result in an amount becoming payable to the Government.

Section 119 provides that where such an amount is due, filing a further appeal before the High Court or Supreme Court does not, by itself, remove the obligation to pay the amount according to the order.

Therefore:

Section 113 → Order of Appellate Tribunal

Section 119 → Payment of sums due under specified appellate orders notwithstanding further appeal

The payment rule in Section 119 therefore operates after the relevant appellate order has been passed.

Section 119 and Section 117

Section 117 deals with an appeal to the High Court against an order of the State Bench or Area Bench of the Appellate Tribunal where the case involves a substantial question of law.

Section 119 specifically recognises an order passed by the High Court under Section 117.

Therefore, if the High Court passes an order under Section 117 that results in an amount being due to the Government, Section 119 provides that the amount shall be payable according to that order even if a further appeal is preferred to the Supreme Court.

Section 119 and Section 118

Section 118 deals with an appeal to the Supreme Court.

An appeal may lie to the Supreme Court from:

• an order passed by the National Bench or Regional Benches of the Appellate Tribunal; or
• a judgment or order of the High Court in an appeal under Section 117 where the High Court certifies the case as fit for appeal to the Supreme Court.

Section 119 operates alongside this appellate structure by stating that the filing of such a further appeal does not, by itself, make the amount determined under the relevant order non-payable.

Simple Example – Tribunal Order Followed by High Court Appeal

Suppose the Appellate Tribunal passes an order determining:

• GST payable: ₹8 lakh
• Interest: ₹1 lakh
• Other amounts as applicable

The order results in ₹9 lakh becoming due to the Government.

The taxpayer is aggrieved and files an appeal before the High Court.

Section 119 provides that the amount due to the Government as a result of the Tribunal’s order remains payable in accordance with the order, notwithstanding the filing of the High Court appeal.

The mere filing of the appeal does not, by itself, change the payment position under Section 119.

Simple Example – High Court Order Followed by Supreme Court Appeal

Suppose the High Court passes an order under Section 117 and determines that ₹15 lakh is payable to the Government.

The taxpayer subsequently approaches the Supreme Court.

Section 119 provides that the amount due under the High Court’s order shall be payable in accordance with that order notwithstanding the further appeal.

The existence of the Supreme Court appeal alone does not make the amount automatically non-payable.

Does Filing an Appeal Automatically Stay the Demand?

Section 119 is important in understanding this question.

The statutory provision specifically states that sums due to the Government under the specified orders remain payable notwithstanding that an appeal has been preferred to the High Court or Supreme Court.

Therefore, filing a further appeal by itself is not the same thing as obtaining a stay of the operation or recovery of the relevant order.

Where a competent court or authority separately grants a stay or other relief, the effect of that specific order must be considered according to its terms.

Section 119 should therefore not be interpreted as saying that a taxpayer can never obtain a stay. Its specific point is that the filing of an appeal alone does not prevent the amount from being payable under the order.

Section 119 and Recovery Proceedings

Section 119 concerns the payment of sums due to the Government.

Recovery of amounts under the CGST Act is dealt with through the recovery provisions, particularly Section 79.

Section 78 deals with the initiation of recovery proceedings after an amount payable pursuant to an order becomes due.

Section 79 provides various statutory modes for recovery where an amount payable remains unpaid.

Therefore, the provisions can be broadly understood as follows:

• Section 78 – when recovery proceedings may be initiated;
• Section 79 – modes of recovery;
• Section 119 – payment of sums due under specified appellate orders notwithstanding further appeal.

These provisions should be read together rather than treated as identical.

Section 119 and Section 78

Section 78 generally provides that an amount payable pursuant to an order under the Act is to be paid within the period specified there, normally three months from the date of service of the order, subject to the statutory proviso allowing a shorter period in specified circumstances.

Section 119 addresses a different appellate situation.

Where an order of the Appellate Tribunal or High Court results in sums being due to the Government, Section 119 makes clear that the amount remains payable notwithstanding a further appeal to the High Court or Supreme Court.

Therefore:

Section 78 → Initiation of recovery after an amount becomes payable

Section 119 → Payment position where further appeal has been preferred

Section 119 and Section 79

Section 79 contains the principal recovery mechanisms under the CGST Act.

These can include:

• deduction from money owed to the person;
• detention and sale of goods;
• recovery from a third person;
• attachment and sale of property;
• recovery as arrears of land revenue; and
• recovery through a Magistrate in the circumstances provided by law.

Section 119 itself does not prescribe these recovery methods.

Instead, it establishes that the sums covered by the section are payable according to the relevant appellate order notwithstanding further appeal.

If an amount remains unpaid and recovery becomes applicable, the separate recovery provisions must be considered.

Section 119 and Pre-Deposit Requirements

Section 119 should also be distinguished from the pre-deposit requirements for filing appeals.

For example, Section 107 contains a statutory pre-deposit requirement for an appeal to the Appellate Authority.

Section 112 contains pre-deposit requirements for an appeal to the Appellate Tribunal.

These provisions are concerned with the conditions for maintaining an appeal.

Section 119, on the other hand, deals with sums that become due to the Government as a result of specified appellate orders.

Therefore, pre-deposit and payment of amounts determined by appellate orders are different concepts.

Section 119 and Section 112

Section 112 deals with appeals to the Appellate Tribunal.

Among other things, Section 112 provides conditions relating to payment of admitted amounts and an additional percentage of the remaining disputed tax for filing an appeal.

Once the Tribunal passes an order under Section 113, the consequences of that order can become relevant under Section 119.

Thus, Section 112 primarily concerns filing an appeal to the Tribunal, whereas Section 119 concerns payment of sums due following specified appellate orders.

Section 119 and Section 115

Section 115 deals with interest on refund of an amount paid for admission of an appeal.

It is concerned with situations where a pre-deposit is required and subsequently becomes refundable as a result of an appellate order.

Section 119 is different because it deals with sums due to the Government following specified appellate orders.

Therefore:

Section 115 → Interest on refund of qualifying appeal pre-deposit

Section 119 → Payment of sums due to Government despite further appeal

What Types of Amounts Can Be Covered?

Section 119 refers broadly to “sums due to the Government”.

Depending on the relevant order, the amount may arise from the tax dispute and associated statutory liabilities determined under the GST law.

The exact components depend on the contents and legal effect of the particular appellate order.

Therefore, Section 119 should not be read as creating a new tax, interest or penalty. Instead, it addresses the payment status of amounts that are already due as a result of the specified order.

👉 Read More → Section 119 – Sums due to be paid notwithstanding appeal, etc.

Section 119 Does Not Create a Fresh Demand

This is an important distinction.

Section 119 does not itself determine:

• taxable value;
• tax rate;
• tax liability;
• interest liability;
• penalty; or
• classification.

Those matters arise from the underlying GST proceedings and orders.

Section 119 simply states that the sums due to the Government as a result of specified appellate orders are payable according to those orders notwithstanding further appeal.

What If the Higher Court Subsequently Changes the Order?

A further appeal may result in the appellate order being modified, reversed or otherwise affected.

The final legal position must then be determined in accordance with the order of the higher court.

The CBIC payment rules also recognise that an amount of demand entered in the electronic tax liability register is reduced to the extent of relief granted by an Appellate Authority, Appellate Tribunal or court.

Therefore, Section 119 should not be understood as permanently fixing the amount irrespective of the eventual outcome of the appellate process.

Its purpose is to establish that the mere filing of a further appeal does not, by itself, make the amount under the relevant order non-payable.

Example – Tribunal Order Later Modified by High Court

Suppose:

1. The Appellate Tribunal determines that ₹20 lakh is payable.
2. The taxpayer files an appeal before the High Court.
3. The High Court later reduces the liability to ₹12 lakh.

The ultimate liability would have to be adjusted in accordance with the High Court’s order and the applicable GST procedures.

Section 119 does not prevent the High Court from exercising its appellate jurisdiction.

It simply addresses the payment position while the further appeal has been preferred.

Example – High Court Order Later Taken to Supreme Court

Suppose:

1. The High Court determines that ₹30 lakh is payable.
2. The taxpayer files an appeal before the Supreme Court.
3. The Supreme Court subsequently modifies the High Court’s order.

The final position must be implemented according to the Supreme Court’s order.

Section 119 does not prevent a higher appellate authority from modifying the underlying order.

Why Section 119 Is Important for Taxpayers

For taxpayers involved in prolonged GST litigation, Section 119 is particularly important because it separates two concepts:

Right to pursue an appeal

and

Obligation to pay sums due under the relevant order

A taxpayer may have a statutory right to challenge an order before a higher forum. However, merely filing that challenge does not automatically mean that the amount determined by the lower appellate order ceases to be payable.

Taxpayers therefore need to examine both:

• the applicable appeal provisions; and
• the effect of the particular appellate order and any separate stay or relief.

Practical Steps for a Taxpayer

When an appellate order results in an amount becoming payable, a taxpayer should:

1. Read the Complete Order

Determine exactly what the appellate authority has ordered.

2. Identify the Amount Due

Separate tax, interest, penalty and other components as specified in the order.

3. Check the Appeal Route

Determine whether the next statutory forum is the High Court or Supreme Court.

4. Check Limitation

An appeal must be filed within the applicable statutory period, subject to the relevant provisions concerning condonation.

5. Do Not Treat Filing as an Automatic Stay

A taxpayer should distinguish between filing an appeal and obtaining an actual stay or other protective order.

6. Monitor the Electronic Liability Records

Where applicable, check the electronic tax liability register and related GST records.

7. Implement Subsequent Orders

If a higher appellate forum modifies the liability, the resulting relief or additional liability should be given effect according to the applicable procedure.

Section 119 and Stay Orders

A taxpayer may seek appropriate interim relief or stay from the competent appellate court where permitted by law.

Section 119 does not itself prohibit such relief.

The important point is that an appeal and a stay are not automatically the same thing.

The effect of a specific stay order depends on:

• the forum granting the stay;
• the wording of the order;
• the amount covered;
• the period of the stay; and
• any conditions imposed.

Therefore, where litigation continues before a higher court, the taxpayer should examine the exact court order rather than assuming that the appeal itself has suspended the payment obligation.

Section 119 and the Electronic Tax Liability Register

GST payment rules provide for adjustments in the electronic tax liability register where appellate authorities, tribunals or courts grant relief.

The payment and accounting position may therefore change as appellate orders are implemented.

For example, where a demand has been debited to the electronic tax liability register and an appellate authority subsequently grants relief, the liability register is to be adjusted to reflect that relief under the applicable rules.

This is relevant when implementing appellate decisions in the GST system.

Difference Between Section 119 and Section 120

Section 120 deals with appeal not to be filed in certain cases.

It permits the Board, on the recommendations of the GST Council, to issue orders, instructions or directions fixing monetary limits for regulating the filing of appeals or applications by central tax officers.

Section 119 has a completely different purpose.

Section	Main subject
Section 119	Sums due to Government notwithstanding further appeal
Section 120	Monetary limits for filing appeals/applications by tax officers

The fact that the department may decide not to file an appeal in a particular case under applicable monetary-limit instructions does not alter the statutory subject matter of Section 119.

Difference Between Section 119 and Section 121

Section 121 identifies certain non-appealable decisions and orders.

These include specified matters such as:

• transfer of proceedings;
• seizure or retention of books and documents;
• sanction of prosecution; and
• orders under Section 80.

Section 119 instead applies to sums due under specified appellate orders.

Therefore, Section 119 concerns the payment consequences of appellate orders, while Section 121 identifies matters against which an appeal does not lie.

Section 119 in the GST Appellate Structure

The broader appellate structure can be understood as follows:

Adjudicating Authority

↓

Appellate Authority

↓

Appellate Tribunal

↓

High Court, where the statutory conditions are satisfied

↓

Supreme Court, where the statutory conditions are satisfied

Section 119 operates at the higher appellate stages by providing that sums due to the Government under specified orders remain payable notwithstanding a further appeal.

Important Points to Remember About Section 119

The major points of Section 119 are:

1. Section 119 is titled “Sums due to be paid notwithstanding appeal, etc.”
2. It deals with sums due to the Government.
3. It applies notwithstanding that an appeal has been preferred to the High Court or Supreme Court.
4. It covers orders passed by the National or Regional Benches of the Appellate Tribunal under Section 113(1).
5. It covers orders passed by the State Bench or Area Benches of the Appellate Tribunal under Section 113(1).
6. It covers orders passed by the High Court under Section 117.
7. The sums due under those orders are payable in accordance with the order passed.
8. Filing a further appeal does not, by itself, make the amount non-payable.
9. Section 119 does not itself create a tax or penalty.
10. Section 119 does not determine the merits of the underlying dispute.
11. Section 119 is different from the pre-deposit requirements for filing appeals.
12. Section 119 is also different from the recovery mechanisms under Section 79.
13. A separate stay or other relief granted by a competent court must be considered according to its terms.
14. If a higher appellate forum subsequently modifies the order, the liability must be implemented according to the later order.
15. GST payment rules provide for corresponding adjustment of the electronic tax liability register when appellate relief is granted.

👉 Read More → Section 121 – Non-appealable decisions and orders

Conclusion

Section 119 of the CGST Act establishes an important rule concerning the payment of amounts determined to be due to the Government following specified appellate orders.

The section provides that even where an appeal has been preferred to the High Court or Supreme Court, sums due to the Government as a result of an order of the National or Regional Benches of the Appellate Tribunal, State Bench or Area Benches of the Appellate Tribunal, or the High Court, as specified in the provision, shall be payable in accordance with the order passed.

The practical significance of Section 119 is that a taxpayer should not automatically assume that filing a further appeal suspends the payment obligation. The filing of an appeal and the grant of a stay are separate matters. Where a competent court grants a specific stay or other relief, the effect of that order must be considered according to its terms.

Section 119 also does not mean that the amount can never be changed later. If a higher appellate forum modifies or reverses the earlier order, the resulting liability or relief must be implemented according to the subsequent order and applicable GST procedures. GST payment rules provide mechanisms for reflecting appellate relief in the electronic tax liability register.

For taxpayers, the key lesson is to carefully distinguish between appeal, pre-deposit, stay, payment and recovery. These are separate concepts under the GST law. Section 119 specifically addresses the payment position following specified appellate orders, while Sections 78 and 79 deal with the subsequent recovery framework.

In short, Section 119 ensures that the mere filing of a further appeal does not, by itself, suspend the obligation to pay sums due to the Government under the specified appellate order. The taxpayer must consider the actual order, applicable appeal provisions and any separate stay or relief granted by the competent forum.

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