Decided 8 September 2026. The Ernakulam Bench of GSTAT has dismissed a department appeal challenging the deletion of Rs 7,35,714 of interest, because the amount was below the Rs 20 lakh monetary limit fixed by CBIC Circular 207/1/2024-GST for appeals to GSTAT. In an interest-only dispute, the interest amount is the measure, and none of the exclusions applied.
Case at a glance
| Case | Commissioner of CGST & CE, Kochi v. Surya Business Combines |
| Forum | GSTAT, Ernakulam Bench (Vice-President Subramanya Rayaprol and Member (Technical) Ramamoorthi Sriram) |
| Appeal No. | APL/18/ERN/2026 (Final Order No. 03/EKM/KERALAM/2026) |
| Date of order | 8 September 2026 |
| Amount in dispute | Interest of Rs 7,35,714 |
| Result | Revenue appeal dismissed on monetary limit |
Facts of the case
The respondent, a mobile phone dealer, was issued a notice on 28.03.2023 for interest of Rs 10,01,390 on late returns. The original order confirmed it with a Rs 10,000 penalty.
The Joint Commissioner (Appeals) on 26.10.2024 confirmed interest of Rs 2,65,676 on the portion paid through the cash ledger, applying the proviso to section 50(1) and Rule 88B, and dropped Rs 7,35,714. The department appealed, arguing interest was due on the gross tax.
Issue before the Tribunal
Can the department appeal to GSTAT where the disputed interest is below the monetary limit in Circular 207/1/2024-GST?
What the Tribunal held
- Circular 207/1/2024-GST dated 26.06.2024, issued under sections 120 and 168 on the GST Council's recommendation, fixes limits of Rs 20 lakh for GSTAT, Rs 1 crore for High Courts and Rs 2 crore for the Supreme Court.
- Where the dispute is about interest only, the interest amount is taken for the monetary limit; here, Rs 7,35,714.
- None of the exclusions (vires challenges, valuation, classification, refunds, place of supply, recurring interpretation issues, strictures, etc.) applied.
- The appeal was dismissed on the ground of monetary limit under the National Litigation Policy.
Practical takeaways for taxpayers
- If the department appeals to GSTAT on an amount below Rs 20 lakh, check Circular 207/1/2024 and raise the monetary limit objection.
- Note the exclusions: the department may still appeal on recurring interpretation issues or where a provision is held ultra vires.
- In combined demands, the aggregate amount across appeals in a composite order is considered.
Frequently asked questions
What is the monetary limit for department appeals to GSTAT?
Rs 20 lakh, under CBIC Circular 207/1/2024-GST, subject to listed exclusions.
How is the amount measured in an interest-only dispute?
By the amount of interest in dispute, according to the circular.
Facing a similar GST dispute?
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This summary is based on the order of the GST Appellate Tribunal, Ernakulam Bench (Final Order No. 03/EKM/KERALAM/2026) in Appeal No. APL/18/ERN/2026. It is general information, not legal advice; the outcome of any case depends on its own facts and the full text of the order.