Filing of Appeal against the Rectification Rejection Order after the time limitation specified under CGST Act, 2017

[Ravishankar M]

Dear Sir/Madam,

An Adjudication order was passed by the GST authorities U/s.73 on 28-01-2025 and no appeal/rectification application has been filed against the same. But after span of 128 days from the date of adjudication order, the Tax Payer intends to file a rectification appeal U/s.161 of the GST Act, on 05-06-2025 expecting a rejection order since it has been filed belatedly. Later the Tax Payer intends to file an appeal on the rejection order U/s.107 of the CGST Act, 2017. Can the appellate authority accept the appeal on the same, even though no appeal or rectification application was filed within the time of limitation specified under the Act. Please clarify.

[Sadanand Bulbule]

Under the GST Act, there is no backdoor entry to file an appeal under Section 107 via deliberatley getting the endoresemnt rejecting the application for rectification of error[?] filed under Sectioon 161 of the Act, that too filed after the lapse of specified time!

Further the FAA cannot consider such by-passing attempt to redeem the limitation to file an appeal against the Order-in-Original passed on 28/01/2025. Instead of this roller-coaster, try your luck in the State High Court for condonation of delay, if there are sufficient grounds to convince.

[KASTURI SETHI]

In such a scenario, there is no hope even in High Court also. No direct entry in High Court. High Court admits only that writ petition wherein the department has violated the principles of natural justice. For example; P.H. not fixed, reply to the SCN not considered by the Adjudicating Authority, passing non-speaking order etc.

[KASTURI SETHI]

Time consumed under Section 161 of CGST Actcan be excluded for filing an appeal under Section 107 only if application for rectification is filed under section 161within time limit otherwise not.

Peruse the following judgement  :

2024 (12) TMI 140 - MADRAS HIGH COURT - M/S. SPK AND CO, REPRESENTED BY ITS JOINT MANAGING PARTNER VERSUS THE STATE TAX OFFICER, MUTHUKULATHUR

[YAGAY andSUN]

Yes, under certain conditions, the appellate authority can accept the appeal against the rejection of the rectification application, but not to directly entertain an appeal against the original adjudication order, which has attained finality due to the lapse of the limitation period.

Let’s break this down step-by-step in light of the Central Goods and Services Tax (CGST) Act, 2017:

1. Adjudication Order under Section 73

Passed on: 28-01-2025

No appeal or rectification filed within time → So this order attains finality under the law after the limitation period lapses.

2. Rectification Application under Section 161

Filed on: 05-06-2025 (i.e., after 128 days)

Section 161 allows rectification within 3 months (i.e., 90 days) from the date of the order.

Therefore, filing after 128 days is time-barred, and the proper officer will reject the rectification application due to delay.

3. Appeal against Rejection of Rectification (under Section 107)

Taxpayer now files an appeal under Section 107 against this rejection order.

Now, this appeal is not against the original adjudication order, but against a fresh order rejecting the rectification request.

4. Can the Appellate Authority Entertain the Appeal?

Yes, the appellate authority can entertain an appeal against the rejection of the rectification application, but the scope of such appeal will be limited to:

Whether the rejection of rectification was valid in law (i.e., whether there was a mistake apparent on the face of record, and whether the delay in filing rectification was justifiable).

However, the appellate authority cannot go into the merits of the original adjudication order under Section 73 since it has already attained finality (no appeal filed in time).

5. Important Points to Remember:

Section 107(1): Appeal to Appellate Authority can be filed within 3 months from the communication of the decision/order.

Section 107(4): The appellate authority may condone delay up to 1 additional month if sufficient cause is shown.

In this case, the appeal is against the rejection order (not the original adjudication), so timelines apply from the date of rejection order.

⚖️ Final Conclusion:

The appellate authority may accept the appeal against the rejection order of rectification, subject to:

It being filed within the prescribed time (3 months + 1 month condonable delay from date of rejection).

However, the original adjudication order passed u/s 73 remains valid and final, and cannot be reopened at this stage unless there is a jurisdictional error or violation of natural justice, which are rare exceptions.

AI Summary

Late Tax Rectification Application Challenges Procedural Timelines, Seeks Appellate Relief Under CGST Act Section 161 and 107 A taxpayer filed a rectification application under Section 161 of the CGST Act after 128 days, beyond the 90-day limitation period. The application was expected to be rejected, with plans to subsequently appeal the rejection under Section 107. Legal experts suggest the appellate authority may accept the appeal against the rejection order, but cannot revisit the original adjudication order that has attained finality due to missed limitation periods.