Kanan International Pvt. Ltd. & Anr Vs Union of India & Ors (Gujarat High Court)
Summary: The Gujarat High Court considered a group of Special Civil Applications raising a common issue concerning computation of limitation for appeals under Section 107 of the GST Act where a rectification application under Section 161 had been filed and decided after the original adjudication order. Special Civil Application No.1116 of 2025 was treated as the lead matter.
The petitioners had initially filed a refund application, which was rejected by the Adjudicating Authority on 16.12.2019 in Form GST RFD-06. Their appeal was allowed on 08.10.2020 because the refund rejection had been made without granting an opportunity of hearing, and the matter was remitted for fresh adjudication. Following a notice dated 12.09.2022 and the petitioners’ detailed reply, the Adjudicating Authority again rejected the refund claim by order dated 03.10.2022.
The petitioners thereafter filed a rectification application under Section 161 of the Central/Gujarat Goods and Services Tax Act, 2017 on 02.01.2023. The High Court recorded that the application was filed within the prescribed statutory period of 90 days. The Adjudicating Authority rejected the rectification application by a detailed and reasoned order dated 14.09.2023.
On 11.01.2024, the petitioners filed an appeal challenging both the original refund rejection dated 03.10.2022 and the rectification order dated 14.09.2023. The Appellate Authority, however, rejected the appeal by order dated 31.05.2024 solely on limitation, computing the limitation period from the original adjudication order dated 03.10.2022 and observing that it had no power to condone delay beyond the period prescribed under Section 107(4).
