GST Appeal Limitation Period Begins from Date of Rectification Application Rejection If one filed, Not Order Date: Madras HC [Read Order]

Recently, the Madurai bench of Madras High Court has ruled that the limitation period for challenging the original Goods and Services Tax ( GST ) Assessment order begins from the date of the dismissal of the rectification if such rectification is raised and not the order date of original assessment order.

The grounds raised by the petitioner, M/s.SPK and Co  is that the show cause notice was vague and he has also relied upon the order of the Single Judge of this Court in the case of MD Electric Co Vs State Tax Officer and contended that this Court had set aside the impugned order of assessment in similar case.

However, the court noted that, in the present case, the petitioner had filed a detailed reply to the show cause notice, which had been duly considered by the authorities before passing the impugned assessment order. Thus, the claim of vagueness could not be raised at this stage.

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Further, the court observed that the petitioner’s rectification application had been dismissed on the grounds that the issues raised therein were essentially challenges to the assessment order, which should have been addressed through an appeal. The court emphasized that the petitioner should now approach the appropriate appellate authority to contest the merits of the assessment order.

A key contention raised by the petitioner was the apprehension that the appellate authority might calculate the limitation period from the date of the original assessment order, which could render the appeal time-barred.

Addressing this concern, the court referred to Section 161 of the GST Act, which allows rectification of errors in assessment orders.

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Justice K. Kumaresh Babu clarified that if a rectification application is filed and subsequently rejected, the limitation period for filing an appeal does not begin from the date of the original assessment order but from the date of the rectification dismissal.

In this case, the original assessment order was passed on August 7, 2024, and the rectification application was dismissed on November 12, 2024. The court ruled that the limitation period for filing an appeal against the assessment order would begin from November 12, 2024, the date on which the rectification application was rejected.

Accordingly, the petition was disposed of.

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