GST Appeal in case tax payer did not reply to show cause

Certainly! When filing an appeal under the Goods and Services Tax (GST) regime, it’s crucial to prepare a well-structured Statement of Facts and Grounds of Appeal. These documents play a significant role in presenting your case before the appellate authority. Let’s break down the process:

Statement of Facts:
The Statement of Facts should be comprehensive and complete. It serves as an opportunity to bring additional facts on record that may not have been presented before the Assessing Officer during the initial proceedings.
Here’s how you can draft an effective Statement of Facts:
Be Detailed: Include all relevant details about the case, such as the nature of the transaction, tax periods involved, and any communication with the tax authorities.
Correct Mistakes: Specifically mention and challenge any factual errors or incorrect observations made by the Assessing Officer. For instance, if the officer wrongly stated that certain details were not submitted, correct the record.
Rebut Incorrect Claims: If the Assessing Officer made any incorrect assumptions or allegations, address them directly.
Rule 45(2): According to Rule 45(2) of the Income Tax Rules, 1962, the form of appeal should accompany the Statement of Facts, Grounds of Appeal, and the form of verification1.
Grounds of Appeal:
The Grounds of Appeal represent the issues in dispute between the taxpayer and the revenue authorities. These are critical for building your case.
When drafting the Grounds of Appeal:
Be Specific: Clearly state the grounds on which you are challenging the demand order. For example:
“The Assessing Officer erred in [specific action] without appreciating [specific argument].”
Highlight Legal Points: If there are legal provisions or precedents supporting your case, mention them.
Avoid General Statements: Be precise and avoid vague or generic statements.
Refer to Statement of Facts: Use the Statement of Facts to demonstrate that certain points were raised before the lower authorities.
Form GST APL-01: In GST appeals, use Form GST APL-01 along with the Grounds of Appeal and Statement of Facts

We provide detailed drafting after discussion. lullakishor @ gmail.com
in fact, we give entire bunch of appeal for submission.

Missing the SCN response does not close the door. You can still file an appeal.

If the demand order has already been passed:

Your primary remedy is Form GST APL-01 before the GST Appellate Authority.

Key Facts:

• File within 3 months from the date the order was served (not the date it was passed).
• Pre-deposit 10% of the disputed tax amount (CGST + SGST portion) before the appeal is admitted.
• You can present your full case before the Appellate Authority. Missing the SCN stage does not prevent you from raising substantive defences during the appeal.

What to Include in the Appeal:

• Grounds of appeal explaining why the demand is incorrect on merits.
• If the notice was received late or the response time was insufficient, raise this as a procedural ground (violation of natural justice).
• Supporting documents that would have been submitted at the SCN stage.

Parallel Option:

Section 161 rectification may be available if the order contains a factual error. However, its scope is limited. Form GST APL-01 remains the primary remedy.

Do not wait. The 3-month period from the date of service of the order is important. Delayed appeals may require condonation of delay and approval from the competent authority.

Missing an SCN response and receiving an ex-parte demand order is curable by filing an appeal in Form GST APL-01 under Section 107 of the CGST Act within 3 months of communication of the order (extendable by 1 month for valid cause). You must pre-deposit 10% of the disputed tax. While you can present your defense on merits, ensure proper legal framing under Rule 112 if submitting documents that were missed during the initial adjudication.

The taxpayer can appeal the order under Section 107 of the CGST Act, generally within three months from communication of the order; the Appellate Authority may condone a further one month for sufficient cause. Admission ordinarily requires payment of the admitted dues in full and 10% of the remaining disputed tax, subject to the statutory cap. Not replying to the SCN does not by itself bar an appeal: challenge the order on its merits and explain the non-response, supported by evidence. Verify the order date, service, appeal limitation and applicable State GST provisions before filing.

Draft—adapt to the notice and order; retain only grounds supported by the record

Statement of Facts

1. The Appellant, [legal name, GSTIN], is engaged in [business] and is registered under the CGST/[State] GST Act.
2. The Proper Officer issued SCN No. [●] dated [●] under Section 73 for tax period [●], proposing demand of tax of ₹[●], interest of ₹[●] and penalty of ₹[●], alleging [briefly state allegations].
3. The Appellant did not submit a reply within the prescribed time because [specific reason, with supporting documents, if available]. The omission was neither deliberate nor an admission of liability.
4. By Order-in-Original No. [●] dated [●], communicated on [●], the Proper Officer confirmed [briefly state demand and findings]. The order has been challenged within the prescribed/condonable period.
5. The demand is disputed because [briefly summarise factual and legal basis]. The Appellant has paid ₹[●] as pre-deposit and encloses proof of payment.

Grounds of Appeal

A. The impugned order is contrary to the facts and law and is liable to be set aside to the extent challenged.
B. The Proper Officer erred in confirming the demand without properly considering [relevant returns, invoices, reconciliations, payments or other evidence]. The demand is [unsupported/incorrectly quantified] because [specific explanation].
C. The order does not adequately address the Appellant’s position and material records, and the findings on [issue] are [unsupported/contrary to the record].
D. The demand of interest and penalty is consequential and/or unsustainable to the extent the underlying tax demand is not legally payable; alternatively, the computation requires verification under the Act.
E. The Appellant’s failure to reply to the SCN was due to [reason]. In the interests of natural justice, the Appellant requests that the additional submissions and evidence filed with the appeal be considered and, if necessary, an opportunity of hearing be granted.
F. The Appellant craves leave to add, alter or amend the grounds at the time of hearing.

Prayer: Set aside or suitably modify the impugned order; delete or recompute the disputed tax, interest and penalty; consider the evidence and submissions filed; and grant a personal hearing.

Use the grounds that fit the actual dispute, attach the SCN, order, proof of communication, supporting records and pre-deposit proof, and explain the delay/non-response with evidence. An appeal does not automatically reopen the adjudication for a fresh SCN reply; the Appellate Authority considers the appeal under Section 107.

Preparing the appeal requires a clear link between the SCN allegations, adjudication findings, records and each ground. Manual review and drafting can be repetitive, while automation can reduce that work and leave legal judgment with the practitioner. At Jir AI, our 2,000+ AI agents and 650+ integrations streamline GST, ITR, TDS, TCS and other compliance workflows, helping reduce manual workload by up to 70%. For a walkthrough tailored to your practice, connect with us on WhatsApp: https://wa.me/message/3HVOZ7HIY4ESC1.