In shortTax disputes in India usually start with a notice from the Income Tax Department, a GST officer or Customs. A timely, documented reply often closes the matter at that stage. If an adverse order is passed, income tax appeals go to the Commissioner (Appeals) and then the ITAT, GST appeals go to the Appellate Authority and then the GST Appellate Tribunal, and customs appeals go to the Commissioner (Appeals) and then CESTAT. High Courts hear questions of law and writ petitions.
What this practice area covers
- Income tax: replies to scrutiny and reassessment notices, faceless assessment proceedings, penalty defence, appeals and stay of demand. The Income-tax Act, 2025 applies from 1 April 2026; proceedings for earlier years still refer to the 1961 Act, and many familiar section numbers have been renumbered.
- GST: scrutiny notices, audit observations, show cause notices, demand orders, blocked input tax credit, cancellation of registration and appeals under the CGST Act, 2017.
- Customs: classification and valuation disputes, seizures, confiscation, penalties, refunds and appeals under the Customs Act, 1962.
Routine filing, such as returns and registrations, sits in our tax filing and compliance area. This area is for disputes.
How tax disputes typically run
Notice and reply. Most income tax proceedings are faceless: notices arrive on the e-filing portal and replies are uploaded there, with a personal hearing by video on request. GST notices come on the GST portal. The reply should answer each point, attach evidence and raise legal objections such as limitation or lack of jurisdiction at the first opportunity.
Order and first appeal. If the officer passes an adverse order, the first appeal goes to the Commissioner (Appeals) for income tax and customs, and to the Appellate Authority for GST. GST appeals require a pre-deposit of 10% of the disputed tax, and customs appeals a pre-deposit of 7.5% of the duty or penalty in dispute. Recovery of the balance is generally stayed once the appeal and pre-deposit are made, subject to the rules for each tax.
Tribunal and courts. Second appeals go to the ITAT, the GST Appellate Tribunal or CESTAT, which are the last fact-finding forums. Further appeals lie to the High Court on substantial questions of law. A writ petition may be filed directly where a notice is without jurisdiction or natural justice has been denied.
Timelines and costs in general terms
Reply deadlines in notices are short, often 7 to 30 days, and extensions are not guaranteed. Appeal periods are counted in days or a few months from the date the order is received, so the date of service matters. A first appeal can take from several months to a couple of years, and tribunal appeals a similar period.
Government fees on tax appeals are small. The real costs are the pre-deposit (where applicable) and professional fees, which depend on the amount in dispute, the number of issues and the forum. We quote per stage: reply, first appeal, tribunal.
Mistakes that make tax disputes worse
The most expensive mistakes are ignoring portal notices because the email went to an old address, replying without documents, missing the appeal deadline, and paying a demand under protest without recording the protest. In GST, many demands arise from mismatches between GSTR-1, GSTR-3B and supplier filings that can be explained with a reconciliation. In customs, accepting a classification at the port without objection can weaken a later refund claim.
Which service do you need?
All tax & customs disputes services
Please note: this page explains the law and procedure in general terms as on 30 October 2026. Fees, limits and timelines change, and the facts of each case matter, so take advice on your own papers before acting.
Frequently asked questions
What should I do first when I receive an income tax notice?
Check the section, the year it relates to and the reply deadline on the e-filing portal, then collect the documents it asks for. Get advice before replying if the notice proposes an addition or reopens an old year.
Can I ask for a personal hearing in faceless assessment?
Yes. You can request a hearing through video conference, and it is generally granted where a variation adverse to you is proposed.
Do I have to pay the whole GST demand before appealing?
No. You pay the admitted amount and a pre-deposit of 10% of the disputed tax with the first appeal. Recovery of the balance is then stayed while the appeal is pending.
What is the difference between a tax appeal and a writ petition?
An appeal challenges the merits of an order before the tax hierarchy. A writ petition in the High Court is used where the authority acted without jurisdiction, violated natural justice or applied an invalid law.
Can a tax dispute be settled?
Some can, through schemes the government announces from time to time, compounding of certain offences, or settlement mechanisms in specific laws. We check whether any current scheme suits your case.
Can Customs release seized goods before the case is decided?
Goods can often be released provisionally on a bond and security while adjudication is pending, unless they are prohibited goods.
