Confused about whether GST appeal timelines begin from the original or rectified order? Learn the legal position and implications from a key Madras High Court ruling.
The interplay between rectification and appeals under the Goods and Services Tax (GST) regime is a recurring issue faced by taxpayers and professionals alike. One such dilemma arises when a demand order under Section 73 or 74 of the CGST Act is followed by a rectification application under Section 161. The core question then becomes:
From which date should the limitation period for filing an appeal under Section 107 be computed?
The date of the original order?
Or the date of the rectified order?
The Logical Approach: Appeal Period from Rectified Order
Intuitively and legally, the appeal period should commence from the date of the rectified order. This is because rectification under Section 161 can materially alter the content and outcome of the original order. Once rectified, the original order effectively merges with the corrected version, forming a new, final decision.
This interpretation ensures fairness by allowing taxpayers to appeal against the final version of the order, not an earlier iteration that may no longer be valid in its original form.
Judicial Backing: SPK & Co. vs. State Tax Officer
This view finds support in the Madras High Court’s decision in SPK & Co. vs. State Tax Officer (W.P.(MD) Nos. 27787 & 27788 of 2024). The Court held that the limitation period under Section 107 should be calculated from the date of the rectified order, not the original one.
Such reasoning is grounded in legal logic and the doctrine of natural justice – a taxpayer cannot be expected to appeal against an order that is later amended, especially if the rectification is significant.
Why This Matters: Practical Implications
Here’s why this issue is critical:
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Rectification applications under Section 161 can be filed within six months from the date of the original order.
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But the appeal period under Section 107 is just three months, extendable by one month with sufficient cause.
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If the rectified order is issued after three to four months from the original order, the taxpayer may find that the appeal period (based on the original order date) has already expired.
This creates a procedural gap that can unjustly deprive the taxpayer of their right to appeal—despite the corrected order potentially altering the basis of the dispute.
Conclusion: Preserving the Right to Appeal
To prevent miscarriage of justice and ensure consistency, the date of the rectified order should be treated as the starting point for filing appeals under Section 107 of the CGST Act. This approach not only aligns with judicial precedent but also upholds the foundational principles of fairness and access to remedies.
The contents of this article are intended for informational and educational purposes only and do not constitute legal advice or a legal opinion. Readers are advised to seek specific and personalized legal counsel prior to acting upon any of the information provided herein. If you require any further information, you may reach out to Lawfluencers at hello@lawfluencers.com