Madras HC: Limitation Period for Contesting GST Assessment Orders U/S 107 Begins Upon Denial of Rectification Request

It was cited by the Madras HC that the limitation period for contesting the assessment orders u/s 107 of the GST Act commences from the date of rejection of the rectification application filed u/s 161.

The Bench of Justice K. Kumaresh Babu marked that “………the period of limitation for challenging the order of assessment shall start ticking from the date of rejection of the rectification application…………”

The taxpayer/applicant in the matter, answering to the GST Show cause notice furnished a detailed response. Post regarding this response, the impugned order was passed. Therefore the taxpayer furnished a rectification application, which was dismissed based on the problems raised in the rectification petition were challenges to the order of assessment.

The assessment orders have been contested by the taxpayer and the rectification order was passed via the department to the Madras High Court.

It was claimed by the taxpayer that merely due to the rectification application having been rejected, the duration of limitation to contest the original assessment order could not cited to start from the date on which the original order was passed, it merely counts from the date on which the rectification order has been passed.

It was mentioned by the bench that the assessment order was made dated 07.08.2024 and the order for the rectification was made dated 12.11.2024. Hence the limitation duration for contesting the order of assessment on 07.08.2024 will initiate ticking from the rejection date of the rectification application which is 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,” the bench mentioned.

Also, the bench mentioned that the issue in the writ petition apart from the ambiguity of the SCN which has been carried previously, as had been operated upon by the taxpayer, the cited claim can not be raised in the writ petition.
On the merits of the assessment order, all the additional grounds are founded.

The bench in the aforesaid view asked the taxpayer to approach the pertinent authority. Counsel for Petitioner/ Assessee: B. Vijay Karthikeyan Counsel for Respondent/ Department: J.K. Jayaselan.