On this page
- Statutory text of Section 120
- Section 120 in simple language
- How monetary limits work
- What happens when the department does not file an appeal?
- Same or similar issue in another case
- Can a taxpayer argue departmental acquiescence?
- Detailed practical examples
- Departmental litigation workflow
- Common Google search questions
- Related GST provisions
- Frequently asked questions
- Quick revision
120 Appeal not to be filed in certain cases
(1) The Board may, on the recommendations of the Council, from time to time, issue orders or instructions or directions fixing such monetary limits, as it may deem fit, for the purposes of regulating the filing of appeal or application by the officer of the central tax under the provisions of this Chapter.
(2) Where, in pursuance of the orders or instructions or directions issued under sub-section (1), the officer of the central tax has not filed an appeal or application against any decision or order passed under the provisions of this Act, it shall not preclude such officer of the central tax from filing appeal or application in any other case involving the same or similar issues or questions of law.
(3) Notwithstanding the fact that no appeal or application has been filed by the officer of the central tax pursuant to the orders or instructions or directions issued under sub-section (1), no person, being a party in appeal or application shall contend that the officer of the central tax has acquiesced in the decision on the disputed issue by not filing an appeal or application.
(4) The Appellate Tribunal or court hearing such appeal or application shall have regard to the circumstances under which appeal or application was not filed by the officer of the central tax in pursuance of the orders or instructions or directions issued under sub-section (1).
What does Section 120 mean?
Section 120 is about how the Central Tax administration decides whether to pursue an appeal or application under the GST appellate provisions. The Board can issue directions fixing monetary limits for departmental appeals/applications.
Why was this provision needed?
Tax administration can involve a very large number of disputes. If every small-value order had to be challenged through every appellate level regardless of the amount involved, departmental litigation could become disproportionate. Section 120 provides a statutory framework for regulating such departmental appeals.
How do GST departmental appeal monetary limits work?
Section 120 itself does not put a fixed rupee amount directly into the Act. Instead, sub-section (1) authorises the Board to issue orders, instructions or directions fixing monetary limits.
Therefore, a person researching a departmental GST appeal should distinguish between:
| Source | What it does |
|---|---|
| CGST Act Section 120(1) | Provides the statutory authority for the Board to regulate departmental appeals/applications through monetary limits. |
| Board instructions / directions | Provide the operative departmental litigation limits and instructions applicable to the relevant period. |
| Particular case facts | Determine whether the applicable instruction actually covers the proposed appeal. |
| Judicial forum | May consider the circumstances in which an appeal was not filed, as required by Section 120(4). |
What amount should be checked?
The applicable departmental instruction should be read carefully to determine the monetary measure used for that appellate level and type of dispute. Depending on the instruction, different treatment may apply to tax, interest, penalty, fee or other amounts. The actual instruction applicable to the case controls.
What happens when the Central Tax officer does not file an appeal?
Suppose an order goes against the department. The officer considers whether to file an appeal. If the applicable Board direction under Section 120 means that the department does not file the appeal, sub-section (2) says that this does not prevent the officer from filing an appeal or application in another case involving the same or similar issue or question of law.
Why can this happen?
- The amount in Case A may fall below the applicable departmental litigation limit.
- The same legal issue may arise in Case B with a much larger amount.
- The Board may have different litigation instructions for different appellate forums.
- The department may have to consider broader questions of law and administrative circumstances.
Can the department appeal a similar issue later?
Yes. Section 120(2) expressly says that non-filing in one case pursuant to the Board's orders, instructions or directions does not preclude a Central Tax officer from filing an appeal or application in another case involving the same or similar issues or questions of law.
| Case | Amount / circumstances | Possible Section 120 effect |
|---|---|---|
| Case A | Lower-value dispute covered by applicable departmental limit | Department may not file, depending on the operative instruction. |
| Case B | Higher-value dispute involving same legal issue | Section 120(2) does not prevent departmental appeal. |
| Case C | Different facts but related question of law | Department may assess the case under the applicable instruction. |
Can a taxpayer argue that the department has accepted the issue?
Section 120(3) specifically addresses this situation. Even where no appeal/application was filed by the Central Tax officer under the Board's monetary-limit orders or directions, a party cannot simply contend that the officer has acquiesced in the disputed decision or issue merely because the appeal was not filed.
However, what does the forum consider?
Section 120(4) provides that the Appellate Tribunal or court hearing the later appeal/application shall have regard to the circumstances under which the departmental appeal/application was not filed pursuant to the Board's directions.
Therefore, the non-filing is not simply invisible. The circumstances surrounding the non-filing can be relevant to the forum's consideration.
Section 120 examples for GST professionals
Example 1 – Small-value departmental dispute
A Central Tax order is adverse to the department. The amount falls within the applicable departmental monetary limit below which the department ordinarily does not pursue the next appeal. The officer does not file the appeal.
Section 120 result: That non-filing does not necessarily mean the department has accepted the underlying legal proposition for every other dispute.
Example 2 – Same issue, much larger demand
The same statutory interpretation issue later arises in another taxpayer's case involving a substantially larger amount. Section 120(2) does not prevent the department from pursuing an appeal in that other case merely because the earlier low-value case was not appealed.
Example 3 – Taxpayer argues “department accepted the law”
A taxpayer relies on the fact that Central Tax officers did not appeal an earlier order and argues that the department has accepted that interpretation.
Section 120(3): The taxpayer cannot make that argument solely on the basis that the earlier departmental appeal was not filed pursuant to the Board's instructions/directions.
Example 4 – Court examines why the earlier appeal was not filed
A later case reaches the Appellate Tribunal or court. The earlier departmental order was not appealed. Section 120(4) requires the forum to have regard to the circumstances in which that earlier appeal/application was not filed under the Board's directions.
Example 5 – Departmental litigation strategy
A tax commissionerate maintains a litigation register. Each proposed departmental appeal is checked against the applicable Board instruction, monetary limit, forum, issue and any special exception. The register records the reason for non-filing. This creates an audit trail explaining why a particular order was not challenged.
Section 120 litigation decision workflow
Recommended internal checklist
- Identify the order and appellate forum.
- Identify the relevant date and the Board instruction applicable on that date.
- Calculate the amount using the method specified by the applicable instruction.
- Check whether the issue falls under any exception or special direction.
- Record the legal issue and potential revenue implication.
- Record the reason for filing or non-filing.
- Preserve approval and legal review documents.
- Where non-filing is based on a monetary limit, retain the calculation supporting that conclusion.
- Monitor whether a later case involving the same or similar issue requires a separate decision.
Section 120 CGST Act – key points for Google searches
Section 120 of the CGST Act, 2017 deals with situations where a Central Tax officer may not file an appeal or application because of monetary limits or other directions issued by the Board. The Board's power under Section 120(1) allows departmental litigation to be regulated through orders, instructions or directions.
A common question is: “If GST department did not appeal an order, does that mean the department accepted the decision?” Section 120(3) says that a party cannot contend that the officer has acquiesced in the disputed decision merely because an appeal or application was not filed pursuant to the Board's directions.
Another important question is: “Can GST department appeal the same issue in another case?” Section 120(2) expressly provides that non-filing in one case does not prevent the Central Tax officer from filing an appeal or application in another case involving the same or similar issues or questions of law.
- What is Section 120 of CGST Act?
- What is monetary limit for GST departmental appeal?
- Can GST department appeal if amount is below monetary limit?
- If department does not appeal GST order, is it accepted?
- Can GST department appeal same issue in another case?
- What does Section 120(2) CGST Act mean?
- What does Section 120(3) CGST Act mean?
- What does Section 120(4) CGST Act mean?
- GST departmental litigation monetary limits explained
- CBIC instructions for departmental GST appeals
Frequently asked questions on Section 120
1. What is Section 120 of the CGST Act?
It provides a statutory framework under which the Board may regulate Central Tax departmental appeals and applications through monetary limits, orders, instructions or directions.
2. Does Section 120 fix a specific rupee limit in the Act?
No. Section 120(1) gives the Board power to issue orders, instructions or directions fixing monetary limits. The operative amount must therefore be checked in the applicable Board instruction for the relevant period and forum.
3. If the GST department does not appeal, does that mean it accepted the decision?
Not automatically. Section 120(3) specifically prevents a party from contending that the officer acquiesced in the disputed decision merely because the appeal/application was not filed pursuant to the Board's directions.
4. Can the GST department appeal the same legal issue in another case?
Yes. Section 120(2) expressly states that non-filing in one case does not preclude an appeal/application in another case involving the same or similar issue or question of law.
5. Why would the department not appeal a case?
One statutory reason is that the case may fall within a monetary limit or direction issued by the Board under Section 120(1). The exact reason should be verified from the applicable instruction and case record.
6. Does Section 120 apply to a taxpayer's own appeal?
The wording of Section 120 is directed at appeals or applications by officers of the Central Tax. It is not a general monetary-limit provision restricting a taxpayer's statutory right of appeal.
7. What does Section 120(4) require?
The Appellate Tribunal or court hearing the later appeal/application is to have regard to the circumstances in which the Central Tax officer did not file the earlier appeal/application pursuant to the Board's orders, instructions or directions.
8. Should old GST appeal monetary limits be used for a current case?
No. Departmental monetary-limit instructions can change. The latest instruction applicable to the relevant date and appellate forum should be verified before deciding whether a departmental appeal falls within a limit.
9. Is Section 120 the same as Section 121?
No. Section 120 regulates certain departmental appeals/applications, while Section 121 identifies specified decisions and orders against which no appeal lies.
10. Why is Section 120 important in GST litigation?
It explains why a department may not challenge a particular order while retaining the ability to challenge the same or similar legal issue in another appropriate case.
Section 120 at a glance
| Sub-section | Key point |
|---|---|
| 120(1) | Board may issue orders/instructions/directions fixing monetary limits for Central Tax departmental appeals/applications. |
| 120(2) | Non-filing in one case does not prevent filing in another case involving the same/similar issue or question of law. |
| 120(3) | Non-filing under Board directions cannot by itself be treated as departmental acquiescence. |
| 120(4) | Tribunal/court must have regard to the circumstances of non-filing pursuant to the Board's directions. |
Use of this page
This page is prepared for GST education, public reference and professional workflow support. The CGST Act, rules, Board instructions, circulars and departmental litigation policies can change. Monetary limits are particularly time-sensitive and should be verified against the latest applicable Board instruction before relying on them in an actual matter. This page does not replace professional legal advice.