GSTAT vs. CESTAT: Which Tribunal Governs IGST Appeals on Imported Goods?
Introduction
The indirect tax landscape in India has long grappled with questions of jurisdictional clarity, and one such question that has recently come to the forefront concerns the appropriate appellate forum for disputes involving Integrated Goods and Services Tax (IGST) levied on imported goods. The judgment delivered by the Andhra Pradesh High Court in Avanti Feeds Ltd. v. Union of India, reported in 2026(4)TMI 361 - AP High Court, has reignited this debate among importers, indirect tax professionals, departmental officers, and trade stakeholders.
The central question is deceptively straightforward: when a dispute arises concerning IGST on imported goods — whether relating to assessment, valuation, classification, exemption, refund, or recovery — should the aggrieved assessee approach the Goods and Services Tax Appellate Tribunal (GSTAT) or the Customs, Excise and Service Tax Appellate Tribunal (CESTAT)?
While the Andhra Pradesh High Court in Avanti Feeds did not directly decide this specific appellate question, its ruling on the proper authority for levy, assessment, and collection of IGST on imported goods provides a compelling and logically consistent basis upon which the appellate jurisdiction question can be conclusively answered. This article examines that question through a careful reading of the relevant statutory provisions and judicial reasoning.
The Unique Nature of IGST on Imported Goods
To understand the appellate forum question, one must first appreciate why IGST on imported goods occupies a distinct position within India's indirect tax framework.
IGST is a levy created under the Integrated Goods and Services Tax Act, 2017 (IGST Act). Under the ordinary GST mechanism, IGST applies to inter-state supplies of goods and services, and the associated administrative machinery — including assessment, collection, adjudication, and appeals — operates through the GST framework established under the Central Goods and Services Tax Act, 2017 (CGST Act) and its corresponding state enactments.
However, Parliament deliberately chose a different route for IGST on imported goods. Rather than allowing the standard GST machinery to govern IGST collection at the border, the legislature consciously embedded the levy and collection mechanism within the Customs legal framework, specifically through Section 3 of the Customs Tariff Act, 1975. This deliberate statutory design has given rise to genuine ambiguity about where appellate jurisdiction properly rests.
Why the Issue Matters
The significance of correctly identifying the appellate forum cannot be overstated. Import-related disputes typically involve complex issues such as:
- Valuation disputes at the time of importation
- Classification of imported goods
- Exemption notifications and their applicability
- Refund claims for excess IGST paid
- Recovery proceedings initiated by Customs authorities
- Short-levy or non-levy of IGST
- Penalties and confiscation orders
If assessees approach the wrong forum, their appeals risk dismissal on jurisdictional grounds, causing significant delays, costs, and potential loss of valuable limitation periods. Clarity on this issue is therefore of considerable practical importance.
The Ordinary GST Appellate Mechanism
For disputes arising out of inter-state supplies (attracting IGST), intra-state supplies (attracting CGST and SGST), and import of services, the established appellate hierarchy under GST law operates as follows:
- Adjudication at the officer level
- First appeal before the Appellate Authority under
Section 107of the CGST Act, 2017 - Second appeal before the Goods and Services Tax Appellate Tribunal (GSTAT), established under
Section 109of the CGST Act, 2017 - Further appeals before the High Court and Supreme Court on questions of law
This mechanism is well-suited for disputes arising from supplies within India's domestic territory and for import of services. However, the position is materially different when IGST is levied on the physical import of goods into India.