Department allowed to withdraw GSTAT appeal under Rule 113A as tax demand was below CBIC threshold

By | October 13, 2026
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Department allowed to withdraw GSTAT appeal under Rule 113A as tax demand was below CBIC threshold

Issue

Whether the Revenue Department can be permitted to withdraw its appeal before the Goods and Services Tax Appellate Tribunal (GSTAT) when the monetary value of the dispute falls below the threshold limit prescribed by CBIC Circular No. 207/1/2024-GST.

Facts

  • Filing of Appeal: The Appellant Department filed an application/appeal under Section 112(4) of the CGST Act before the GSTAT.
  • Low Tax Effect: The tax amount involved in the appeal was below the minimum monetary limit fixed for litigation by the Central Board of Indirect Taxes and Customs (CBIC) under Circular No. 207/1/2024-GST issued pursuant to Section 120(1).
  • Withdrawal Application: Seeking to withdraw the appeal on the ground of low monetary limit, the Department e-filed a formal withdrawal application in GSTAT FORM-APL5W under Rule 113A on the GSTAT portal.
  • Respondent’s Consent: The respondent taxpayer recorded a statement of no objection to the withdrawal of the appeal.

Decision

  • The GSTAT allowed the Department’s prayer for withdrawal in view of the formal application filed in FORM-APL5W and the specific statement made by the authorized representative. [Para 5]
  • The Tribunal held that under Rule 42 of the GST Appellate Tribunal (Procedure) Rules, 2025, read with Section 112 of the CGST Act, 2017, the disposal of the appeal by abandonment of claims is accepted without entering into or examining the merits of the case. [Paras 5 & 6]
  • Consequently, the application under Section 112(4) was dismissed as withdrawn in favour of the assessee. [Para 6]

Key Takeaways

  • Adherence to CBIC Monetary Limits: Appeals filed by the Revenue Department before GSTAT that fall below the monetary thresholds prescribed under CBIC circulars can be formally withdrawn by the Department.
  • Procedure for Withdrawal: Withdrawal of an appeal before GSTAT must be formally executed by e-filing GSTAT FORM-APL5W under Rule 113A.
  • Disposal by Abandonment without Merits Examination: Under Rule 42 of the GSTAT (Procedure) Rules, 2025, allowing a withdrawal operates as a disposal by abandonment of claims without any adjudication on the legal or factual merits of the underlying dispute.
GOODS AND SERVICE TAX APPELLATE TRIBUNAL , BENGALURU BENCH
Shrikrishna Subray Hegde
v.
Nagshanti Autocars LLP
Prabhakaran P.M., Judicial Member
and Ravi Jesuraj S., Technical Member
APL/6/BUR/2026
OCTOBER  8, 2026
Jayaling, CA (AR) for the Appellant. Prabhat Kumar, AC (DR) for the Respondent.
ORDER
1. When the matter was taken up for hearing on 1st October 2026, the learned Authorised Representative for the Appellant Department appeared in person and the Authorised Representative for the Respondent appeared virtually.
2. The AR appearing on behalf of the Appellant submitted that they wish to withdraw the Application filed under Sub-Section (4) of Section 112 of the CGST/SGST Act 2017 for the reason that the amount involved in the application was less than the monetary limit fixed for application as per the CBIC Circular No. 207/1/2024-GST dated 26th June 2024 issued under the provisions of sub-section (1) of section 120 of the Act.
3. A formal withdrawal application in GSTAT FORM-APL5W prescribed under Rule 113 A of the CGST/SGST Rules 2017 has been submitted electronically on the GSTAT e-Filing Portal, on 1st October 2026 stating that the Appellant did not wish to proceed with the Application for the above reason.
4. The learned Authorised Representative appeared on behalf of the Respondent submitted that they did not have objection to the withdrawal of the Application filed by the Department registered as APL/6/BUR/2026.
5. In view of the formal application and the specific statement made by the Authorised representative for the Appellant Department, the prayer for withdrawal is allowed. Under Rule 42 of the GST Appellate Tribunal (Procedure) Rules, 2025, read with Section 112 of the Central Goods and Services Tax (CGST) Act, 2017, the Tribunal accepts the disposal of the litigation by way of abandonment of claims by the Appellant, without discussing the matter on merit.
6. Accordingly, the Application filed under Section 112(4) stands dismissed as withdrawn.
7. Any provisional or final acknowledgement issued under Form GST APL 02A stands disposed of under this Final Order in Form GST APL-04A.
The Registry is directed to upload this order on the GSTAT Case Information System and communicate a copy to both the Appellant and the Respondent.