Advisory on Appeal withdrawal with respect to Waiver scheme

In the GST system, taxpayers have the option to withdraw an appeal by filing Form APL-01W (Withdrawal Application). The procedure and outcome of such withdrawal depend on the stage at which the withdrawal is initiated:

 

1. Before Issuance of Final Acknowledgment (APL-02):
   If the withdrawal application (APL-01W) is filed before the issuance of the final acknowledgment (APL-02) by the Appellate Authority, the system will automatically process the withdrawal. Consequently, the status of the appeal application (APL-01) will change from “Appeal Submitted” to “Appeal Withdrawn” without requiring any further approval.

2. After Issuance of Final Acknowledgment (APL-02):
   If the withdrawal application is filed after the final acknowledgment (APL-02) has been issued, the withdrawal will require explicit approval from the Appellate Authority. Upon approval, the appeal status will similarly be updated to “Appeal Withdrawn.”

Relevance to Waiver Scheme under Section 128A

Under the Waiver Scheme provided in Section 128A, it is mandatory that no appeal remains pending before the Appellate Authority against the demand order. In both scenarios mentioned above, once the appeal status reflects as “Appeal Withdrawn”, the condition under Section 128A is considered fulfilled.

Important Action for Taxpayers

While filing a waiver application—or if a waiver application has already been filed—taxpayers are required to upload a screenshot of the appeal case folder clearly displaying the status as “Appeal Withdrawn.” This will serve as evidence of compliance with the requirement under the waiver scheme.

To Join Tax Manthan WhatsApp Channel Click Here