Three months period for filing GST appeal starts from day after order is communicated 

In calculating three-month limitation period for filing GST appeal, starting point is day following the date of communication of order.

In a recent judgment, the Hon’ble Allahabad High Court has held that in calculating three-month limitation period u/s 107 of UPGST for filing GST appeal, starting point is the day following the date of communication of the impugned order. 

ABCAUS Case Law Citation:
ABCAUS 4050 (2024) (05) HC

In The instant case the assessee/Petitioner had challenged the order passed by the Assistant Commissioner UPGST and the order passed by the first appellate authority dismissing the appeal filed by the Petitioner as time barred. It was submitted that the authorities had erred in not reading the provision and mis calculating the period of limitation incorrectly.

Petitioner was granted registration certificate under the U.P. Goods and Services Tax Act, 2017 (UPGST Act). The registration of the petitioner was cancelled by the GST Authorities vide impugned order. The Petitioner had filed an application for revocation of the cancellation of registration which was rejected.

Aggrieved by the order, the Petitioner had filed an appeal under Section 107 of the UPGST Act. The first appellate authority vide order dismissed the said appeal as time barred being beyond the period of three months under the provisions of section 107(3) of UPGST/CGST Act and even after considering the one month of condonation as provided in section 107(4).

The Hon’ble High Court observed that the phrase “from the date on which the said decision or order is communicated to such person” as used in as Section 107 of UPGST is crucial as it marks the starting point of the limitation period for filling an appeal. The legislative intent behind this provision is to ensure that the aggrieved party has a clear and fair understanding of the decision or order before the clock starts ticking for the appeal period.

The Hon’ble High Court further observed that Section 9 of the General Clauses Act, 1897 Act(GC Act)  provides guidance on how to compute periods of time specified in statutes. Specifically, it indicates that when calculating a time period that starts with the word “from”, the day of the event from which the period begins is excluded, and when the period ends with word “to”, the last day of the period is included. According to Section 9 of the GC Act, when calculating the limitation period “from” the date of communication of the order, the day on which the order is communicated is excluded. This ensures that the appellant has a full three months to prepare and file the appeal. For example, if an order is communicated to a taxpayer on January 1, the period of three months will start from January 2.

The Hon’ble High Court also observed that it is also crucial to understand the meaning of the individual terms “within” and “month” as used in legal parlance and specifically within the framework of the UPGST Act.

The Hon’ble High Court observed that the term “within” in legal terminology typically denotes the inclusion of the entire period specified, up until the last possible moment of the specified time frame. When a statue prescribes an action to be taken “within” a certain period, it generally means that the action can be performed any time from the beginning of the period until the end of the last day of the period. For instance, if a law states that an appeal must be filed “within three months”, it implies that the appeal can be filed at any point during the three month period, right up until the end of the last day of the three-month period. This interpretation ensures that the party obligated to take action has the full benefit of the entire period specified by the statute. In the context of Section 107 of the UPGST Act, “within three months” means that the appeal can be filed anytime from the date following the communication of the order until the end of the third month, ensuring that the appellant has the maximum possible time to prepare and file their appeal.

The Hon’ble High Court further observed that in modern statutory contexts, the term “month” primarily refers to a calendar month. A calendar month is defined as the period from a given date in one month to the corresponding date in the following month. For example, a period of one calendar month from January 15 would end on February 14 and the next month in this context would begin from February 15. With the standardization of the Gregorian calendar, a month is commonly understood to mean a calendar month. This uniformity aids in consistent statutory interpretation and application, ensuring that legal deadlines are clear and predictable.

The Hon’ble High Court stated that while calculating the three-month period for filing an appeal, the starting point is the day following the date of communication of the order. For example, if an order is communicated on January 1, the three-month period begins on January 2 and ends on April 1.

The Hon’ble High Court observed that the appeal filed under Section 107 of the UPGST Act by the Petitioner was rejected on the ground that the same had been filed one day after the expiry of limitation and by treating 4 months as 120 days.

The Hon’ble High Court opined that it was evident that that the petitioner received the order in original on July 12 and filed the appeal on November 10. Three months period would have begun on July 13 and expired on October 12 and the extended period would have expired on November 12. In light of the same, the calculation done by the UPGST authorities was incorrect which warrants the exercise of writ jurisdiction.

Accordingly, the order passed by the first appellate authority was quashed and set aside. The High Court directed the first appellate authority to allow the delay in filing the appeal and thereafter hear the appeal on merits and decide the same expeditiously.

Download Full Judgment Click Here >>

• Order not in conformity of Faceless Assessment Scheme if not est? – ITAT remands case
• Extension of the validity of FCRA registration certificates till 30.09.2024
• Section 68 to 69B applicable only if assessee is required to maintain books of accounts
• When show cause notice proposed addition u/s 68, addition can not be made u/s 69A
• AO directed to consider belated reply due to illegible copy of SCN u/s 148A(b)