Section 101 of CGST Act - Orders of Appellate Authority
Section 101 of the Central Goods and Services Tax Act, 2017 deals with orders passed by the Appellate Authority for Advance Ruling. It specifies the opportunity of hearing, the nature of the order that may be passed, the 90-day period for disposal, the effect of a difference of opinion between the members and communication of the advance ruling.
Section 101 - Statutory Provision
(1) The Appellate Authority may, after giving the parties to the appeal or reference an opportunity of being heard, pass such order as it thinks fit, confirming or modifying the ruling appealed against or referred to.
(2) The order referred to in sub-section (1) shall be passed within a period of ninety days from the date of filing of the appeal under section 100 or a reference under sub-section (5) of section 98.
(3) Where the members of the Appellate Authority differ on any point or points referred to in appeal or reference, it shall be deemed that no advance ruling can be issued in respect of the question under the appeal or reference.
(4) A copy of the advance ruling pronounced by the Appellate Authority duly signed by the Members and certified in such manner as may be prescribed shall be sent to the applicant, the concerned officer, the jurisdictional officer and to the Authority after such pronouncement.
Meaning and Scope of Section 101
Section 101 forms part of Chapter XVII - Advance Ruling of the CGST Act. It governs the manner in which the Appellate Authority for Advance Ruling disposes of an appeal or reference that comes before it. The provision should therefore be read together with the provisions dealing with the Authority for Advance Ruling, applications for advance ruling, procedure before the Authority and appeals to the Appellate Authority.
The expression advance ruling is defined in Section 95. The procedure begins with an application under Section 97, followed by proceedings under Section 98. An appeal against the specified advance ruling is dealt with under Section 100, while Section 101 governs the resulting appellate order.
Key Requirements Under Section 101
| Provision | Requirement |
|---|---|
| Section 101(1) | The parties must be given an opportunity of being heard before the Appellate Authority passes its order. |
| Section 101(1) | The Appellate Authority may confirm or modify the ruling appealed against or referred to. |
| Section 101(2) | The appellate order is to be passed within 90 days from the filing of the appeal under Section 100 or reference under Section 98(5). |
| Section 101(3) | If the members differ on a point in appeal or reference, no advance ruling can be issued on that question. |
| Section 101(4) | The ruling must be duly signed, certified as prescribed and communicated to the specified persons and Authority. |
Opportunity of Being Heard - Section 101(1)
Sub-section (1) expressly incorporates an opportunity of hearing into the appellate advance-ruling process. The Appellate Authority is empowered to pass an order confirming or modifying the ruling, but it does so after the parties to the appeal or reference have been given an opportunity of being heard.
This requirement is important because the appellate proceedings may result in the original advance ruling being modified. Section 101 therefore expressly provides a hearing before the appellate decision is made.
90-Day Period for the Appellate Order
Under Section 101(2), the order referred to in sub-section (1) is to be passed within 90 days from the date on which the appeal under Section 100, or a reference under Section 98(5), is filed.
The 90-day period in Section 101 should not be confused with the time allowed for filing an appeal under Section 100. Section 100 governs the appeal to the Appellate Authority, whereas Section 101(2) deals with the period for passing the appellate order.
Difference of Opinion Between Members
Section 101(3) specifically addresses a situation where the members of the Appellate Authority differ on a point or points referred to them in the appeal or reference.
In that situation, the statutory consequence is that it is deemed that no advance ruling can be issued in respect of the question on which the members differ.
Communication of the Advance Ruling
Section 101(4) requires a copy of the advance ruling pronounced by the Appellate Authority to be duly signed by its members and certified in the prescribed manner. After pronouncement, the copy is to be sent to the applicant, the concerned officer, the jurisdictional officer and the Authority.
The CGST Rules contain the procedural provisions concerning advance rulings and certification of copies pronounced by the Appellate Authority.
Practical Effect of Section 101
Section 101 establishes the decision-making framework for the Appellate Authority for Advance Ruling. In practical terms, an appeal or reference before the Appellate Authority involves an opportunity of hearing, followed by an order confirming or modifying the ruling. The Act specifies a 90-day period for the order and separately provides for the consequence where the members cannot agree on the question before them.
Once pronounced, the ruling must be signed, certified and communicated in accordance with Section 101(4). Its applicability should also be considered with Section 103, which deals with the persons on whom an advance ruling is binding and the circumstances for which it remains binding.
Related CGST Act Provisions
For a complete understanding of the advance-ruling mechanism, Section 101 may be read with Section 95 - Definitions, Section 96 - Authority for Advance Ruling, Section 97 - Application for Advance Ruling, Section 98 - Procedure on Receipt of Application, Section 99 - Appellate Authority for Advance Ruling, Section 100 - Appeal to Appellate Authority, Section 102 - Rectification of Advance Ruling and Section 103 - Applicability of Advance Ruling.