1. Title of the Document
| Document Title | Clarification regarding filing of appeal by department before the Goods and Services Appellate Tribunal against order of appellate authority (where Orders-in-Original have been passed by a Common Adjudicating Authority in DGGI cases) |
| Document Number | Circular No. 256/02/2026-GST (F. No. CBIC-20010/12/2026-GST) |
| Issuing Authority | Central Board of Indirect Taxes and Customs (CBIC), GST Policy Wing, Department of Revenue, Ministry of Finance, Government of India |
| Date of Document | 25th July, 2026 |
| Relevant Provisions | Sections 107, 109 and 112 (in particular section 112(3)) of the CGST Act, 2017; para 3A and Table V of Notification No. 02/2017-Central Tax dated 19th June 2017, as inserted by Notification No. 02/2022-Central Tax dated 11th March 2022 and amended by Notification No. 27/2024-Central Tax dated 25th November 2024; Notification S.O. 3048(E) dated 31st July 2024 (territorial jurisdiction of GSTAT Benches); Circular Nos. 169/01/2022-GST, 239/33/2024-GST and 250/07/2025-GST |
2. Summary of the Document
The Central Board of Indirect Taxes and Customs (CBIC) has issued Circular No. 256/02/2026-GST dated 25th July 2026, clarifying the procedure for review of, and departmental appeals before the Goods and Services Tax Appellate Tribunal (GSTAT) against, orders of the appellate authority, where the Order-in-Original was passed by a Common Adjudicating Authority (CAA) in cases investigated by the Directorate General of GST Intelligence (DGGI).
By way of background, para 3A and Table V, inserted in Notification No. 02/2017-Central Tax by Notification No. 02/2022-Central Tax dated 11th March 2022 (further amended by Notification No. 27/2024-Central Tax), empower Additional or Joint Commissioners of specified Central Tax Commissionerates, with all-India jurisdiction, to adjudicate show cause notices issued by DGGI officers. Circular Nos. 169/01/2022-GST and 239/33/2024-GST prescribed guidelines for assignment of such notices, and Circular No. 250/07/2025-GST dealt with review and departmental appeals before the appellate authority.
Field formations sought clarity on who is the reviewing authority for appellate orders in CAA cases, which jurisdictional authority must file the appeal before GSTAT, and whether the appeal lies before the Bench having territorial jurisdiction over the noticee or the Bench covering the Commissionerate of the CAA. The Board notes that GSTAT is constituted under section 109, its territorial jurisdiction is notified by S.O. 3048(E) dated 31st July 2024, and appeals are governed by section 112. The clarifications follow consultation with the Ministry of Law and Justice, to ensure uniformity.
On procedure, the appellate authority, after passing an order-in-appeal under section 107, must upload it on the common portal and send a copy to the Principal Commissioner or Commissioner of the CGST Commissionerate having jurisdiction over the CAA, by email and in physical form. That officer must examine it promptly, seeking DGGI’s comments if required, and forward his comments and recommendations to the jurisdictional CGST Principal Commissioners or Commissioners of all noticees involved in the Order-in-Original.
The jurisdictional CGST Principal Commissioner or Commissioner of each noticee is the reviewing authority under section 112(3) for that noticee, and must examine the legality and propriety of the appellate order, considering those comments and recommendations. If an appeal is warranted, he may, by order, appoint a subordinate officer to file and pursue it. Separate appeals must be filed for each noticee by that noticee’s jurisdictional Commissionerate, before the GSTAT Bench having territorial jurisdiction over the noticee. A copy of the appeal, or intimation that none is to be filed, must be sent to the CAA’s Commissionerate.
Legal Takeaway: The circular settles that the territorial Bench is determined by the noticee’s location and not by the seat of the CAA, consistent with section 112 read with S.O. 3048(E). It places the section 112(3) review function with the officer having jurisdiction over the taxpayer, supported by inputs from the CAA’s Commissionerate and DGGI. For taxpayers, any departmental appeal against a favourable order-in-appeal will arise separately and locally for each noticee. Practitioners should monitor the common portal and track limitation, as the circular prescribes no timelines.
3. Tabular Summary
| S. No. | Para | Aspect | Authority Concerned | Action / Clarification | Mode / Manner | Legal Provision | Practical Takeaway |
|---|---|---|---|---|---|---|---|
| 1 | 1–3 | Common Adjudicating Authority framework | Additional/Joint Commissioners of specified Central Tax Commissionerates (CAA) | Adjudicate show cause notices issued by DGGI officers, with all-India jurisdiction | As per earlier notifications and circulars | Para 3A and Table V of Notification 02/2017-CT (inserted by 02/2022-CT; amended by 27/2024-CT); Circulars 169/01/2022, 239/33/2024, 250/07/2025 | Order-in-Original may be passed by a CAA outside the noticee’s own jurisdiction |
| 2 | 4–5 | Doubts raised by field formations | CBIC | Clarifies reviewing authority, filing authority and territorial Bench for GSTAT appeals in CAA cases | Circular issued after consultation with Ministry of Law and Justice | Sections 109 and 112 of CGST Act; S.O. 3048(E) dated 31.07.2024 | Uniform procedure across Commissionerates |
| 3 | 6(a) | Communication of order-in-appeal | Appellate authority | Uploads order-in-appeal and sends copy to Pr. Commissioner / Commissioner having jurisdiction over CAA | Common portal; email; physical copy | Section 107 of CGST Act | Order-in-appeal will be visible on the portal; copy is also routed to CAA’s Commissionerate |
| 4 | 6(b) | Examination and comments | Pr. Commissioner / Commissioner having jurisdiction over CAA | Examines order-in-appeal at the earliest, seeking DGGI inputs if required, and forwards comments with recommendations to jurisdictional Pr. Commissioners / Commissioners of all noticees | Comments and recommendations | Circular para 6(b) | Department’s internal inputs precede the review decision |
| 5 | 6(c) | Reviewing authority | Jurisdictional CGST Pr. Commissioner / Commissioner of the taxable person/noticee | Examines legality and propriety of the appellate order, considering comments and recommendations | Review of order of appellate authority | Section 112(3) of CGST Act | Review is by the officer having jurisdiction over the taxpayer |
| 6 | 6(c) | Appointment of officer to file appeal | Reviewing authority | May, by order, appoint a subordinate officer to file and pursue the appeal where appeal is considered necessary | Written order | Section 112(3) of CGST Act | Appeal is to be pursued by an officer appointed by the reviewing authority |
| 7 | 6(d) | Separate appeals and Bench | Jurisdictional CGST Commissionerate of each noticee | Files a separate appeal for each noticee before the GSTAT Bench having territorial jurisdiction over that noticee | Appeal before the concerned GSTAT Bench | Sections 109 and 112; S.O. 3048(E) dated 31.07.2024 | Appeals are noticee-wise and Bench is decided by the noticee’s location |
| 8 | 6(e) | Intimation to CAA’s Commissionerate | Jurisdictional CGST Pr. Commissioner / Commissioner | Intimates the Commissioner of the CAA’s Commissionerate with a copy of the appeal, or intimates that no appeal is to be filed | Intimation with copy of appeal | Circular para 6(e) | Ensures coordination between Commissionerates |
Disclaimer: Prepared by Team GSTIndiaguide.com. This summary is for information and does not constitute legal advice. Refer to original notification, judgement, circular or other documents for reference.
Download the Document: Circular No. 256/02/2026-GST dated 25 July 2026 (PDF)
