TaxTMI 
TaxTMI 
The importance of compliance of the requirements well within the stipulated time is most important under GST as a stitch in time saves nine. This is exactly the issue in one case before the Telangana High Court on 15/06/2026 wherein appeal was preferred before the first appellate authority with condonation of delay. The OIO was under rectification process which fact was not figured out in the condonation of delay. The Joint Commissioner (Appeals) rejected the appeal on limitation ground. K. Malaxmi Infra Ventures (India) Private Limited. Versus The Appellate Joint Commissioner of State Tax, Hyderabad - 2026 (6) TMI 1001 - TELANGANA HIGH COURT refers.
The story goes like this. For the financial year 2020-21, a show cause notice was issued on 28/11/2024. As the last date for adjudication happened to be 28/02/2025, the OIO was passed on 24/02/2025 itself. The taxpayer applied for rectification on 18/04/2025. As the rectification process was going on, the taxpayer was waiting for the rectification order. In the meantime, preferred the first appeal on 05/09/2025 with an application for condonation of delay. Most importantly, there were few justifications furnished for the delay in filing the first appeal but the tax professional failed to bring it out in the condonation petition that the rectification was under process as on 05/09/2025, which was the major reason for such delay. The first appeal was rejected on limitation ground on 23/03/2026 whereas the rectification order was out on 19/12/2025.
Due to rejection of the first appeal on limitation ground, the taxpayer preferred the writ before the jurisdictional high court praying for restoration of the appeal as the rectification order was issued only on 19/12/2025 whereas the condonable time with the first appellate authority ended on 24/06/2025 as against appeal filed date of 05/09/2025.
The division bench headed by the Chief Justice has set aside the first appeal order dated 23/03/2026 with liberty to the taxpayer to submit additional grounds within two weeks from 15/06/2026.
Section 161 of the CGST Act grants the taxpayer a period of three months for applying such rectification, it would be advisable to thoroughly scrutinize the OIO to find out as to whether is there any requirement to apply for rectification under section 161 and if yes, to file such rectification application accurately bringing all the errors apparent on record in one go to the notice of the officer who has passed that order. The language used in section 161 suggest that OIO as well as OIA can be rectified under this section as the words used are any authority. The rectification order has to be passed within a period of six months from the date of the order which is sought to be rectified. Accordingly, once the application is made as per requirements of Section 161, the taxpayer may simultaneously apply for the first appeal within three months from the date of OIO to avoid any complications that may arise later as happened in the above case.
The indirect tax laws are procedure oriented and it is of utmost importance to ensure that time limits specified under various sections are strictly adhered at both the ends. The time limits specified for issuance of SCN as well as for passing OIO under sections 73,74 as well as 74A are mandatory and not directory. The time limits for replying to the show cause notice, for preferring first as well as second appeal are to be done well within time without taking recourse of condonation. The first appellate authority may condone only maximum one month and GSTAT may condone only a maximum of three months subject to sufficient cause being proved.
The journey during last nine years with GST has taught us lot of lessons which we as a taxpayer, tax professional as well as tax official must make best use in future so as to minimize the litigation as well as to improve the quality in all stages. As the GSTAT is fully functional now and several second appeals under GST are being filed online which has 19,000 e appeals already, it is time for GST officials to ensure that the orders passed by them are strong enough to get the orders from GSTAT in favor of Revenue, irrespective of the fact as to taxpayer or revenue is in appeal. This approach shall definitely improve the quality of adjudication as well as help in reduction in avoidable litigation.
On the taxpayer part, it may be ensured that all activities such as furnishing the replies wherever required, filing all the applicable GST returns accurately and in time shall allow time to the taxpayer to focus on business improvement as ASMT 10, DRC 01 are all issued only based on differences arising from GST returns.
As GST enters the tenth year shortly, let us hope for better days in future as GST Council is positive in their activities like rate rationalization etc. As the decisions from GSTAT are expected to be settling the matter rather than remand, the same shall pave way for the GST officials to pass orders in future in line with the stand taken by the GSTAT on respective issues.
Once GSTAT starts passing orders shortly, the writs before high courts shall further come down and the condonation of delay is maximum one month at first appeal and three months before GSTAT with sufficient cause. Hence, it is suggested to file appeal wherever required without seeking any condonation by preferring he appeal within permissible time.