The Madras High Court has restored a GST appeal that was rejected solely on the ground of limitation, holding that the appeal was filed within the prescribed three-month period when the date of issuance of the original order was excluded from the computation.
The bench of Justice Senthilkumar Ramamoorthy observed that although the Limitation Act, 1963 does not apply directly to proceedings before a quasi-judicial authority, the principles underlying the legislation may be applied in appropriate cases.
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The petitioner/assessee has challenged an order issued in Form GST APL-02 by the Deputy Commissioner (CT), Appellate Authority, Salem. The appellate authority had rejected the petitioner’s GST appeal solely on the ground that it was filed beyond the limitation period.
The petitioner had challenged an original order dated February 17, 2026. The statutory appeal against that order was lodged on May 18, 2026.
The petitioner contended that the appeal had been presented within the prescribed period of three months. It was argued that the limitation period should be calculated after excluding February 17, 2026—the date on which the original order was issued.
The High Court accepted the contention regarding computation of limitation. It observed that the principles underlying Section 12 of the Limitation Act permit the exclusion of the date from which the limitation period is required to be calculated.
“Although the Limitation Act, 1963 is not applicable to proceedings before a quasi judicial body, principles underlying the Limitation Act may be applied in appropriate cases,” the Court observed.
The Court held that if the three-month limitation period was calculated after excluding the date on which the original order was issued, the petitioner’s appeal would fall within the prescribed period.
The High Court also pointed out that even if the appeal were treated as having been filed after the expiry of the initial three-month period, the appellate authority possessed statutory jurisdiction to condone a delay of up to one additional month.
Under the GST appellate framework, an assessee is ordinarily required to file an appeal before the prescribed appellate authority within three months from the date on which the disputed decision or order is communicated. The appellate authority may allow the appeal to be presented within a further period of one month if sufficient cause is shown for the delay.
The appellate authority rejected the appeal without examining the dispute on its merits. The High Court found that the rejection could not be sustained in view of both the method for calculating the limitation period and the appellate authority’s power to condone a delay of up to one month.
The Court set aside the order rejecting the appeal and restored the proceedings before the appellate authority. The Deputy Commissioner (CT), Appellate Authority, Salem, was directed to receive the appeal and dispose of it on merits.
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