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GST Appeal Runs From If Filed Within Time:
A division bench of the has delivered a significant ruling clarifying the computation of periods for GST appeals under . The Court held that when an assessee files a under within the prescribed period, the for filing an appeal must be calculated from the date of the , not from the original adjudication order. The ruling came in a batch of petitions led by Kanan International Pvt. Ltd., which challenged the rejection of its appeal as .
Case Background
The dispute began when Kanan International's refund claim was rejected by the Adjudicating Authority on . The company appealed successfully, and the matter was remanded on for a fresh hearing. However, on , the Adjudicating Authority again rejected the refund claim.
The petitioner filed a under on —well within the 90-day statutory limit. The Adjudicating Authority disposed of this application on , upholding its earlier order. Subsequently, on , Kanan International filed an appeal before the Appellate Authority challenging both the original order of and the of .
The Appellate Authority dismissed the appeal on , solely on the ground of , calculating the period from the original order of . The authority noted that it lacked power to beyond the prescribed period under .
Arguments Presented
Petitioner's Submissions: Senior counsel argued that the Appellate Authority erred in computing from the original order when a had been filed and decided within time. He contended that the period should run from —the date of the —and that the appeal was timely. Reliance was placed on the High Court's earlier judgment in , which addressed an analogous issue.
Respondent's Submissions: Senior Standing Counsel countered that the impugned order was correct, arguing that must be calculated from the original adjudication order of , and that the Appellate Authority had no jurisdiction to .
Legal Analysis
The High Court observed that the under had been filed within the statutory period and had been duly considered by the Adjudicating Authority through a reasoned order. The Court held that it would be impermissible for the Appellate Authority to ignore this intervening proceeding and compute solely from the original adjudication order.
Citing its earlier decision in , the bench noted that the filing and disposal of a is a vital aspect that directly impacts the calculation of under Section 107. In that case, the Court had held that the period starts running from the date of rejection of the .
The Court clarified that this does not mean an appeal can never be rejected as —if the appeal remains beyond the permissible period even when calculated from the , the Appellate Authority may still reject it.
Key Observations
"It would not be permissible to reject the appeal on the ground of by computing the period from the original adjudication order when a under of the has been filed within the prescribed period and has been duly considered and decided by the Adjudicating Authority by a reasoned order."
"The Appellate Authority was required to examine the details filled in by the petitioner in before rejecting the appeal on the ground of delay."
"The filing and disposal of the against the order dated was a vital aspect which would directly impact on the calculation of the period provided under Section 107 of the Act."
Court's Decision
The allowed the group of petitions, quashing and setting aside the orders passed by the Appellate Authority. The matters were remanded to the Appellate Authority for fresh consideration on merits. The authority has been directed to afford the petitioners an opportunity of hearing and to decide the appeals within twelve weeks from the date of receipt of the judgment.
The ruling provides crucial clarity for GST assessees, affirming that the pendency and disposal of a must be factored into calculations, and that appellate authorities cannot mechanically reject appeals by ignoring such proceedings.
