2024 (12) TMI 140 - HC - GST

Challenge to order of assessment and the order of rectification passed by the respondent - vague SCN - calculation of period of limitation from the date when the original assessment order was passed - HELD THAT - After assessment order has been made, Section 161 of the GST Act provides for an application to be made for rectification. Such rectification can be disposed either in favour of the assessee or against him. If any rectification is made as prayed for, the same would get merged into the original order. Just because the rectification application has been rejected, the period of limitation to challenge the original assessment order cannot be said to begin from the date on which the original order was passed, it would only count from the date on which the order of rectification has been passed. In the present case, the original order of assessment was made on 07.08.2024 and the order in rectification was made on 12.11.2024. Therefore, the period of limitation for challenging the order of assessment dated 07.08.2024 shall start ticking from the date of rejection of the rectification application i.e., from 12.11.2024. It is made clear that when the appeal is filed by the assessee as against the original order of assessment, the period of limitation shall be calculated from the date on which the rectification had been dismissed. Petition disposed off.

Summary

The High Court of Madras heard a case challenging assessment and rectification orders for the years 2019-2020 and 2022-2023. The petitioner argued that the show cause notice was vague, citing a previous case. The court found that the rectification application was dismissed as it challenged the assessment order's merits. The court clarified that the period to challenge the assessment order starts from the date of rejection of rectification. The writ petitions were disposed of with no costs.