Section 99 of CGST Act, 2017 – Appellate Authority for Advance Ruling
• The jurisdictional officer
is aggrieved by the ruling of AAR, they may appeal before the Appellate Authority constituted under this section.
🏛 Composition of Appellate Authority (AAAR)
Each State / UT has its own AAAR.
The authority consists of:
✔ One Central Tax Member
✔ One State/UT Tax Member
This ensures balanced representation of both tax administrations.
📌 Purpose of Section 99
The objective is to:
• Provide appellate remedy
• Ensure legal consistency
• Correct errors of AAR
• Strengthen taxpayer confidence
Without Section 99, advance ruling would have been a single-stage mechanism.
🔄 Two-Tier Advance Ruling Mechanism
| Stage | Authority |
|---|---|
| First Level | Authority for Advance Ruling (AAR) |
| Second Level | Appellate Authority for Advance Ruling (AAAR) |
Section 99 establishes the second level.
📖 Practical Illustration
Example
A company receives an unfavorable advance ruling from AAR regarding classification of goods.
The company believes the ruling is incorrect.
➡ It can file appeal before AAAR constituted under Section 99.
Similarly, the department can also file appeal if ruling is adverse to revenue.
⚖️ Judicial Perspective
Courts have observed that:
• Advance ruling authorities are statutory bodies.
• Appellate mechanism ensures fairness and error correction.
• AAAR has co-extensive appellate powers within statutory limits.
High Courts have also clarified that writ jurisdiction can be invoked in case of jurisdictional error or violation of natural justice by AAAR.
📌 Important Points to Remember
• AAAR is constituted State-wise
• It consists of two members (Central + State)
• It hears appeals under Section 100
• It functions independently from AAR
• It ensures uniformity in GST interpretation
🧩 What Happens in Case of Difference of Opinion?
If members of AAAR differ in opinion:
• The advance ruling shall be deemed not issued on the question under appeal.
This may leave the issue open for regular adjudication.
🎯 Significance of Section 99
Section 99:
✔ Strengthens advance ruling framework
✔ Ensures checks and balances
✔ Promotes legal certainty
✔ Provides appellate remedy
It enhances credibility of the advance ruling system.
📘 Section 99 in Context of Advance Ruling Chapter
| Section | Subject |
|---|---|
| Section 95 | Definitions |
| Section 96 | Authority for Advance Ruling |
| Section 97 | Application |
| Section 98 | Procedure on receipt |
| Section 99 | Appellate Authority |
| Section 100 | Appeal to Appellate Authority |
Section 99 acts as the bridge between AAR and appellate proceedings.
❓ Frequently Asked Questions (FAQs) – Section 99 CGST
Q1. What does Section 99 provide?
It provides for constitution of Appellate Authority for Advance Ruling (AAAR).
Q2. Who constitutes AAAR?
The Government constitutes it for each State/UT.
Q3. Who are members of AAAR?
One Central Tax member and one State/UT Tax member.
Q4. Can taxpayer appeal to AAAR?
Yes, under Section 100.
Q5. Can department appeal?
Yes.
Q6. Is AAAR a judicial body?
It is a statutory quasi-judicial authority.
Q7. Is AAAR ruling binding?
Yes, as per Section 103.
Q8. What if members disagree?
The ruling is deemed not issued on that question.
Q9. Is AAAR different for every State?
Yes.
Q10. Why is Section 99 important?
Because it provides appellate remedy in advance ruling mechanism.
📝 Conclusion
Section 99 of the CGST Act, 2017 establishes the Appellate Authority for Advance Ruling, thereby introducing a second tier in the advance ruling framework. It strengthens procedural fairness, ensures balanced representation of tax authorities, and provides an effective remedy against erroneous advance rulings.
This section plays a vital role in maintaining consistency and credibility in GST interpretations across States.
Comments