Limitation Period For Challenging Assessment Orders U/S 107 Of GST Act Begins From Date Of Rejection Of Rectification Application: Madras HC

The Madras High Court stated that limitation period for challenging assessment orders under section 107 of GST Act commences from the date of rejection of the rectification application filed under section 161. The Bench of Justice K. Kumaresh Babu observed that “………the period of limitation for challenging the order of assessment shall start ticking from the date of rejection of the rectification application………...” In the present case, the assessee/petitioner, in response to a show cause notice, submitted a detailed reply. After considering this reply, the impugned order was passed. Subsequently, the assessee filed a rectification application, which was dismissed on the grounds that the issues raised in the rectification petition were essentially challenges to the order of assessment. The assessee has challenged the assessment order and rectification order passed by the department before the Madras High Court. The assessee submitted that just because the rectification application has been rejected, the period of limitation to challenge the original assessment order cannot be said to begin from the date on which the original order was passed, it would only count from the date on which the order of rectification has been passed. The bench opined that the original order of assessment was made on 07.08.2024 and the order in rectification was made on 12.11.2024. Therefore, the period of limitation for challenging the order of assessment dated 07.08.2024 shall start ticking from the date of rejection of the rectification application i.e., from 12.11.2024. “When the appeal is filed by the assessee as against the original order of assessment, the period of limitation shall be calculated from the date on which the rectification had been dismissed,” added the bench. The bench further stated that the challenge in the Writ Petition apart from the vagueness of the show cause notice which had already been held, since had been acted upon by the assessee, the said claim could not be raised in the Writ Petition. All other grounds are on the merits of the assessment order. In view of the above, the bench directed the assessee to approach the appropriate authority. Counsel for Petitioner/ Assessee: B. Vijay Karthikeyan Counsel for Respondent/ Department: J.K. Jayaselan Case Title: M/s. SPK and Co. v. The State Tax OfficerCitation: 2024 LiveLaw (Mad) 464 Case Number: W.P.(MD)Nos.27787Click Here To Read/Download The Order

Limitation Period For Challenging Assessment Orders U/S 107 Of GST Act Begins From Date Of Rejection Of Rectification Application: Madras HC

Mehak Dhiman

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