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Powers of Revisional Authority.

Section 108(1)

Subject to the provisions of section 121 and any rules made thereunder, the Revisional Authority may, on his own motion, or upon information received by him or on request from the Commissioner of State tax, or the Commissioner of Union territory tax, call for and examine the record of any proceedings, and if he considers that any decision or order passed under this Act or under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act by any officer subordinate to him is erroneous insofar as it is prejudicial to the interest of revenue and is illegal or improper or has not taken into account certain material facts, whether available at the time of issuance of the said order or not or in consequence of an observation by the Comptroller and Auditor General of India, he may, if necessary, stay the operation of such decision or order for such period as he deems fit and after giving the person concerned an opportunity of being heard and after making such further inquiry as may be necessary, pass such order, as he thinks just and proper, including enhancing or modifying or annulling the said decision or order.

AI Explanation

In the realm of tax laws, the Revisional Authority holds significant powers to review and rectify decisions or orders made by subordinate officers. Let's delve into the key aspects of Section 108(1) and how it empowers the Revisional Authority.

Scope of Revisional Authority The Revisional Authority, as defined in Section 108(1), has the jurisdiction to initiate a review process either on their own initiative or in response to information received. This information can come from the Commissioner of State tax or the Commissioner of Union territory tax. The Authority is entitled to call for and scrutinize the records of any proceedings.

Grounds for Revision The authority steps in when they perceive that a decision or order, made under the relevant tax acts, by an officer subordinate to them, is flawed in specific ways. The flaws may include being erroneous to the detriment of revenue interests, deemed illegal or improper, or not taking into account essential facts. This assessment can also be triggered by observations from the Comptroller and Auditor General of India.

Intervention Measures Upon finding such discrepancies, the Revisional Authority is empowered to take various measures. They may choose to temporarily halt the implementation of a decision or order for a specified period. This pause allows for a thorough examination of the matter. Subsequently, after providing the concerned party with an opportunity to present their case and conducting any necessary inquiries, the Revisional Authority can pass a new order. This new order aims to rectify the identified issues and may involve actions such as enhancing, modifying, or annulling the original decision or order.

In essence, Section 108(1) grants the Revisional Authority the responsibility to ensure fairness, legality, and accuracy in tax-related decisions, safeguarding the interests of both the revenue and the affected parties.

Section 108(2)

The Revisional Authority shall not exercise any power under sub-section (1), if—

(a) the order has been subject to an appeal under section 107 or section 112 or section 117 or section 118; or

(b) the period specified under sub-section (2) of section 107 has not yet expired or more than three years have expired after the passing of the decision or order sought to be revised; or

(c) the order has already been taken for revision under this section at an earlier stage; or

(d) the order has been passed in exercise of the powers under sub-section (1):

Provided that the Revisional Authority may pass an order under sub-section (1) on any point which has not been raised and decided in an appeal referred to in clause (a) of sub-section (2), before the expiry of a period of one year from the date of the order in such appeal or before the expiry of a period of three years referred to in clause (b) of that sub-section, whichever is later.

AI Explanation

Limitations on Revisional Authority The Revisional Authority is restricted from exercising its powers under sub-section (1) in the following situations:

(a) Appeal Already Filed If the order in question has already been appealed under section 107, section 112, section 117, or section 118, the Revisional Authority cannot intervene.

(b) Time Constraints The Revisional Authority is also bound by time constraints. It cannot act if the period specified under sub-section (2) of section 107 has not yet expired or if more than three years have passed since the issuance of the decision or order to be revised.

(c) Previous Revision If the order has already undergone revision under this section at an earlier stage, the Revisional Authority is precluded from revisiting it.

(d) Order Issued with Sub-section (1) Powers If the order in question was passed using the powers under sub-section (1), the Revisional Authority cannot exercise its powers.

Exception to the Rule However, there is an exception. The Revisional Authority may still pass an order under sub-section (1) on any point that was not raised or decided in an appeal mentioned in clause (a) of sub-section (2). This exception applies within one year from the date of the order in such an appeal or before the expiration of three years as mentioned in clause (b) of that sub-section, whichever comes later.

Section 108(3)

Every order passed in revision under sub-section (1) shall, subject to the provisions of section 113 or section 117 or section 118, be final and binding on the parties.

AI Explanation

In the legal realm, the powers of revisional authority play a crucial role in shaping outcomes. Section 108(3) is a key provision that outlines the impact of orders passed during the revision process.

Finality of Revision Orders When an order is issued through revision under sub-section (1), its significance is paramount. Despite the complexities of legal provisions in sections 113, 117, or 118, the order's status remains clear—it is final and binding on all involved parties.

In simpler terms, once a decision is made through the revision process, it stands as the conclusive resolution, with its effects reaching across the various sections mentioned. This underscores the authority and impact of revisional powers in the legal framework.

Section 108(4)

If the said decision or order involves an issue on which the Appellate Tribunal or the High Court has given its decision in some other proceedings and an appeal to the High Court or the Supreme Court against such decision of the Appellate Tribunal or the High Court is pending, the period spent between the date of the decision of the Appellate Tribunal and the date of the decision of the High Court or the date of the decision of the High Court and the date of the decision of the Supreme Court shall be excluded in computing the period of limitation referred to in clause (b) of sub-section (2) where proceedings for revision have been initiated by way of issue of a notice under this section.

AI Explanation
In situations where a decision or order is in question, and there is an ongoing appeal at a higher court, the time taken during these appeal processes can affect the overall time limit for revising the decision. Specifically, if the Appellate Tribunal or the High Court has previously ruled on a similar issue in a different case, and there is a current appeal to the High Court or the Supreme Court regarding that ruling, the time between the decision of the Appellate Tribunal and the final decision by the High Court or the time between the decision of the High Court and the decision of the Supreme Court will not be counted when calculating the limitation period mentioned in clause (b) of sub-section (2). This exclusion applies when the revision proceedings have been initiated through the issuance of a notice under this section.

Section 108(5)

Where the issuance of an order under sub-section (1) is stayed by the order of a court or Appellate Tribunal, the period of such stay shall be excluded in computing the period of limitation referred to in clause (b) of sub-section (2).

AI Explanation

In legal matters, the Revisional Authority holds significant powers, as outlined in Section 108(5). This section specifically addresses situations where an order issued under sub-section (1) faces a stay due to a court or Appellate Tribunal.

Period of Stay Exclusion

When a court or Appellate Tribunal puts a hold on the implementation of an order under sub-section (1), the time during which this stay is in effect is not counted when calculating the limitation period mentioned in clause (b) of sub-section (2).

In simpler terms, if a legal order is temporarily stopped by a higher authority, the time during this pause is not considered when determining how much time has passed for legal purposes. This provision helps ensure fairness and accuracy in legal proceedings.

Section 108(6)

For the purposes of this section, the term,—

  • (i) "record" shall include all records relating to any proceedings under this Act available at the time of examination by the Revisional Authority;

  • (ii) "decision" shall include intimation given by any officer lower in rank than the Revisional Authority.

AI Explanation

In this section, certain terms are defined to help us grasp the powers of Revisional Authority more clearly.

  1. Record Inclusion (Section 108(6)(i))

The term "record" in this context covers all documents related to any proceedings under this Act. This includes any information available for examination by the Revisional Authority.

  1. Decision Interpretation (Section 108(6)(ii))

When we talk about "decision" in this section, it goes beyond the final ruling. It also encompasses any communication or notification provided by an officer lower in rank than the Revisional Authority.