First Appellate Authority cannot remand matter to adjudicating authority for verifying reconciliation; it must decide itself under Section 107(11): GSTAT Ernakulam

Allowing the Revenue's appeal, the Tribunal held that the express bar on remand in Section 107(11) obliges the appellate authority to examine the taxpayer's workings itself.

The Goods and Services Tax Appellate Tribunal, Ernakulam Bench, has allowed an appeal filed by the Commissioner, setting aside an appellate order that had directed the adjudicating authority to verify a textile retailer's reconciliation statements and delete the demand if found in order [Commissioner of CGST & CE, Kochi v. Parthas Textiles].

The Bench of Vice President Subramanya Rayaprol and Ramamoorthi Sriram (Technical Member) noted that there was no dispute on the need to verify the workings for FY 2017-18 to 2020-21. The only question was who must do it. Section 107(11) empowers the appellate authority to confirm, modify or annul the order after such inquiry as necessary, but expressly prohibits referring the case back to the adjudicating authority.

Relying on its own decision in Commissioner v. K.A. Traders and rulings of the Calcutta and Allahabad High Courts, including Shyam Traders and Kanha Shree Steels, the Tribunal remanded the matter to the appellate authority to decide afresh within eight weeks on the basis of its existing findings, without referring it back.

2026-juristway.com-3018-GSTAT(Ernakulam)-GST  |  GSTAT, Ernakulam  |  16.10.2026