Section 106 of CGST Act - Procedure of Authority and Appellate Authority

Section 106 of the Central Goods and Services Tax Act, 2017 is part of Chapter XVII on advance ruling. It gives the Authority and the Appellate Authority flexibility to regulate their own procedure, but that procedural power remains subject to the provisions of Chapter XVII.

Text of Section 106

106. Procedure of Authority and Appellate Authority. - The Authority or the Appellate Authority shall, subject to the provisions of this Chapter, have power to regulate its own procedure.

Meaning and scope of Section 106

The provision is procedural. It permits the Authority for Advance Ruling and the Appellate Authority for Advance Ruling to manage the manner in which proceedings before them are conducted where Chapter XVII does not prescribe every procedural detail.

The words "subject to the provisions of this Chapter" are important. The power to regulate procedure cannot override the express requirements, rights, time limits or safeguards contained in Chapter XVII of the CGST Act. The procedure adopted must therefore operate within the statutory advance-ruling framework.

Who are the Authority and Appellate Authority?

For the purposes of the advance-ruling provisions, the expressions used in Section 106 must be read with the definitions and institutional provisions in Chapter XVII. Section 95 contains the relevant definitions, Section 96 deals with the Authority for Advance Ruling, and Section 99 deals with the Appellate Authority for Advance Ruling.

How Section 106 fits into the advance-ruling scheme

An applicant may seek an advance ruling on the matters permitted by Section 97. The procedure on receipt of an application is governed by Section 98. Appeals are governed by Section 100, while orders of the Appellate Authority are dealt with in Section 101.

Section 106 supplements those provisions. It does not replace them. In practical terms, the Authority or Appellate Authority may regulate procedural matters necessary for an orderly hearing and disposal, so long as the procedure remains consistent with the Act and the applicable CGST Rules.

Related procedural provisions

Section 105 separately gives specified civil-court powers to the Authority and Appellate Authority for discovery and inspection, enforcing attendance and examination on oath, issuing commissions, and compelling production of books of account and other records. Section 106 concerns their power to regulate procedure and should be read alongside those powers.

CGST Rules relevant to advance ruling procedure

The CGST Rules prescribe forms and procedural requirements for advance-ruling applications and appeals. In particular, Rule 104 deals with the form and manner of an application for advance ruling, Rule 105 with certification of copies of rulings, Rule 106 with the form and manner of appeal to the Appellate Authority, and Rule 107 with certification and communication of appellate advance rulings.

Important: Section 106 of the CGST Act and Rule 106 of the CGST Rules are different provisions. Section 106 gives the Authority/Appellate Authority power to regulate procedure; Rule 106 deals with the form and manner of appeal to the Appellate Authority for Advance Ruling.

Key points

Section 106 is contained in Chapter XVII of the CGST Act dealing with advance rulings.
The Authority and Appellate Authority can regulate their own procedure.
The procedural power is expressly subject to Chapter XVII and cannot displace statutory requirements.
The provision should be read with Sections 95 to 105 and the applicable advance-ruling rules.
Section 106 of the Act should not be confused with Rule 106 of the CGST Rules.

Related sections of Chapter XVII

This page is a general statutory reference and explanatory article. For a particular transaction or proceeding, the current Act, Rules, notifications and applicable jurisdictional practice should be checked.