In September 2025, the Central Board of Indirect Taxes and Customs (CBIC) issued Order No. 05/2025, an important administrative step concerning legacy disputes under the old Central Excise and Service Tax regimes. Although India transitioned to the Goods and Services Tax (GST) system in July 2017, several appeals filed under earlier laws continue to remain active. These “pre-GST” matters require structured handling to ensure timely disposal and legal clarity. The newly issued order strengthens that process.
Why This Order Matters
Even years after the introduction of GST, the tax system continues to deal with a substantial volume of pending appeals under:
- Section 35 of the Central Excise Act, 1944, and
- Section 85 of the Finance Act, 1994 (the chapter governing Service Tax)
These appeals relate to actions taken before 1 July 2017, when GST replaced Central Excise (except on a few products) and Service Tax. Because the older laws still apply to past transactions, the government must provide a clear structure for adjudicating unresolved cases. Order 05/2025 does precisely that.
Legal Authority Behind the Order
The CBIC has invoked several powers to issue this directive, including:
- Rule 3 of the Central Excise Rules, 2017
- Rule 3 of the Service Tax Rules, 1994
- Clauses (e) and (f) of Section 174(2) of the CGST Act, 2017, which safeguard rights, liabilities, and proceedings related to the pre-GST taxation framework
- Notification No. 01/2025 – Central Excise (NT)
These provisions allow the government to continue, modify, or reassign proceedings under earlier tax laws for actions that took place before GST came into force.
What Order 05/2025 Does
The new order partially modifies Order 01/2025 issued earlier in January 2025. The modification focuses on the assignment of appeals filed on or after 1 July 2017 but relating to the pre-GST tax environment.
Essentially, CBIC has:
- Identified appeals filed under the old Central Excise and Service Tax laws
- Mapped each appeal (listed in the annexure’s columns 2, 3, and 4) to a specific Central Excise Officer (named in column 5)
- Authorized these officers to issue Orders-in-Appeal under the relevant sections of the pre-GST laws
This is an administrative streamlining exercise designed to ensure that each pending appeal has a clearly assigned adjudicating officer, eliminating ambiguity and avoiding delays.
Why This Is Important for Taxpayers
Many taxpayers—manufacturers, service providers, exporters, and others—still have unresolved matters dating back to the pre-GST era. Delays in adjudication create uncertainty, block refunds, and prolong litigation. By reassigning responsibilities in a transparent, structured manner, CBIC aims to:
- Accelerate disposal of long-pending appeals
- Reduce compliance burden
- Improve administrative efficiency
- Provide closure to legacy disputes
A Step Toward Completing the Transition to GST
Eight years after India shifted to GST, most active tax work relates to the new system. Yet legacy cases must be legally resolved to close the chapter on the earlier tax framework. Order 05/2025 is an important step in the government’s ongoing efforts to settle the past while ensuring smoother tax administration in the future.