GST Appeal Limitation Calculated from Physical Dispatch of Order: Madras HC rules Appeal Well Within Period [Read Order]

The decision came in response to writ petitions filed by the taxpayer challenging the rejection of appeals on limitation grounds and seeking a direction to the authorities to reconsider the appeals on merits.

In this case, the petitioner, Thankiyan Georgestephen argued that although the assessment order bore the date 29.05.2023, it was physically dispatched only on 31.05.2023. The department claimed a delay of three days in filing the appeal based on the earlier date.

However, the court accepted the petitioner’s contention and observed that for limitation purposes, the date of dispatch should be considered.

Further, the petitioner pointed out that a single assessment order was issued for three different assessment years (2017-18, 2018-19, and 2019-20), which is against the settled legal position that separate orders must be passed for each year.

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The authorities subsequently issued a summary of proceedings on 18.08.2023. If this subsequent issuance is considered, the appeal would also fall within the limitation period, asserted the petitioner.

The Court also noted in the submission of the petitioner that 10% of the disputed tax had already been deposited by the petitioner, and hence no additional deposit was required at this stage.

JusticeKrishnan Ramasamy observed that “The earlier assessment order was physically dispatched on 31-05-2023. If that is also taken into account, the petitioner's appeal is well within the period of limitation. Therefore, as such, there is no question of delay in filing at all. Therefore, the impugned orders are set aside. The respondents are directed to take the appeal on file and hear it on merits and pass orders at the earliest.”

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Allowing the writ petitions, the High Court set aside the impugned orders rejecting the appeal and directed the department to take the appeals on file, hear them on merits, and pass fresh orders at the earliest.

Mr.N.Sudalai Muthu appeared for the petitioner and Mr.N.Dilip Kumar appeared for the department.