GSTAT Appeal Procedure for DGGI Common Adjudicating Authority Cases: Key Clarifications Under CBIC Circular No. 256/02/2026-GST
The Central Board of Indirect Taxes and Customs (CBIC) has issued Circular No. 256/02/2026-GST dated 25th July, 2026, laying down a comprehensive procedural framework for the filing of departmental appeals before the Goods and Services Tax Appellate Tribunal (GSTAT). This circular specifically addresses situations where the underlying Order-in-Original was passed by a Common Adjudicating Authority (CAA) in cases investigated by the Directorate General of Goods and Services Tax Intelligence (DGGI).
The circular emerges in response to field-level confusion regarding who bears the responsibility for reviewing appellate orders in such cases, which authority must approach the GSTAT, and before which bench of the GSTAT departmental appeals should be instituted. The clarifications issued are binding on all Principal Chief Commissioners, Chief Commissioners, Principal Directors General, and Directors General across India.
Background and Legislative Framework
Origin of Common Adjudicating Authorities in DGGI Cases
To appreciate the significance of this circular, it is essential to understand how Common Adjudicating Authorities came into existence within the GST enforcement structure.
Through notification No. 02/2022-Central Tax dated 11th March, 2022, paragraph 3A and Table V were inserted into notification No. 02/2017-Central Tax dated 19th June, 2017. This amendment—subsequently modified by notification No. 27/2024-Central Tax dated 25th November, 2024—conferred all-India jurisdiction upon Additional Commissioners and Joint Commissioners of Central Tax belonging to specific Central Tax Commissionerates. These officers were designated as Common Adjudicating Authorities for the exclusive purpose of adjudicating show cause notices issued by DGGI officers.
The rationale behind this arrangement is straightforward: DGGI investigations frequently span multiple states and involve several assessees located across different jurisdictions. A single adjudicating authority with all-India jurisdiction ensures consistency in adjudication and prevents fragmented or contradictory orders.
Earlier Circulars Governing CAA Procedures
Two prior circulars had already provided guidelines for various stages of the CAA adjudication process:
- Circular No. 169/01/2022-GST dated 12th March, 2022 — Addressed the assignment of show cause notices to CAAs and the process for passing orders in DGGI-investigated cases.
- Circular No. 239/33/2024-GST dated 4th December, 2024 — Issued updated guidelines on the same subject matters following the 2024 amendment.
- Circular No. 250/07/2025-GST dated 24th June, 2025 — Dealt with reviewing authority, revisional authority, and the procedure for departmental appeals before the appellate authority (i.e., first appellate level) against CAA orders.
However, a gap remained with respect to the second appellate stage, namely, the filing of departmental appeals before the GSTAT against orders of the appellate authority in CAA cases. Circular No. 256/02/2026-GST now fills this gap comprehensively.
Three Core Questions Addressed by the Circular
Field formations had raised three specific queries that the CBIC has now resolved through this circular:
Question 1: Who is the Reviewing Authority for Appellate Orders in CAA Cases?
In conventional GST cases, the jurisdictional Principal Commissioner or Commissioner reviews the order of the appellate authority and decides whether to pursue a further appeal before the GSTAT. However, CAA cases involve assessees spread across multiple Commissionerates, making the identification of the reviewing authority non-trivial.
Question 2: Which Authority Must File the Appeal Before the GSTAT?
Given that the original adjudication was undertaken by a centrally designated CAA rather than the local Commissionerate, there was uncertainty regarding which CGST Commissionerate should actually approach the GSTAT.