M/S Shree Infrastructures vs. The Deputy Commissioner (St) (GST Appeals)

Facts

The petitioner, M/s. Shree Infrastructures, filed a writ petition challenging an order dated 05.03.2025 passed by the Deputy Commissioner (ST) (GST Appeals). The respondent had rejected the petitioner's appeal, filed on 30.01.2025, against an assessment order dated 24.09.2024, on the grounds of limitation. The last date for filing the appeal was 23.01.2025. However, prior to filing the appeal, the petitioner had invoked Section 161 of the GST enactments for rectification of the assessment order, which was rejected on 29.01.2025. The petitioner contended that the period spent pursuing the rectification remedy should be excluded.

Held

The Court held that the appeal filed by the petitioner on 30.01.2025 against the assessment order dated 24.09.2024 should be construed as being in time. The reasoning was that the petitioner had bona fide pursued a remedy under Section 161 of the respective GST enactments for rectification of the assessment order, which was rejected on 29.01.2025, and thereafter filed the appeal on 30.01.2025. The Court applied the principle under Section 14(2) of the Indian Limitation Act, 1963, to exclude the period during which the petitioner was pursuing the rectification remedy. Consequently, the impugned order passed by the respondent rejecting the appeal on grounds of limitation was quashed. The respondent was directed to number the appeal and dispose of it on merits without reference to limitation. No issue was expressly left undecided.

Key Issues

1. Whether the appeal filed by the petitioner on 30.01.2025 against the assessment order dated 24.09.2024 is in time, considering the period spent in pursuing rectification under Section 161 of the GST enactments? (Question of law and mixed fact and law, turning on Section 14(2) of the Indian Limitation Act, 1963 and Section 161 of the GST enactments). Petitioner's contention: The petitioner argued that the period during which they bona fide pursued the remedy of rectification under Section 161 of the GST enactments should be excluded from the limitation period for filing the appeal, by applying the principle of Section 14(2) of the Indian Limitation Act, 1963. They contended that the appeal filed on 30.01.2025 was therefore in time. Respondent's contention: The respondent rejected the appeal on the grounds of limitation, implying that the period spent on rectification could not be excluded.