SPK and Co. Vs State Tax Officer (Madras High Court)
Summary: The Hon’ble Madras High Court (Madurai Bench) in SPK and Co. v. State Tax Officer [W.P. (MD) No. 27787 of 2024, dated November 22, 2024], ruled that the limitation period for filing an appeal against an assessment order under GST begins from the date of the rectification order, not the original assessment order. The petitioner, M/s SPK and Co., challenged the rectification order on grounds of vague show-cause notices (SCNs) and apprehended that the appellate authority might calculate the limitation period from the date of the original order, rendering the appeal time-barred. The Court acknowledged the petitioner’s concerns and clarified that, under Section 161 of the GST Act, rectification orders either merge with the original assessment order or reset the limitation clock if rectification is rejected. In this case, since the original assessment order was passed on August 7, 2024, and the rectification order on November 12, 2024, the limitation period would start from the latter date. The Court dismissed the writ petition with the direction that the appellate authority calculate the limitation accordingly. This ruling aligns with the precedent set in TVL. SKL Exports v. State Tax Officer (2024), where the Court held that the limitation period for appeals should be calculated from the date of order rejection for refund applications. This judgment reinforces the principle of fair opportunity under the “Audi Alteram Partem” rule, ensuring taxpayers are not disadvantaged due to procedural ambiguity.
