Facts of the Case:

In this case, the petitioner challenged an order whereby the appeal filed under Section 107 of the CGST/OGST Act was rejected as time-barred. The dispute arose from an adjudication order passed under Section 73 of the GST Act on 15 October 2025 relating to tax periods April 2022 to March 2023. The adjudication order was communicated to the petitioner through the GST portal on the same date.

According to the petitioner, the limitation period prescribed under Section 107(1) had to be computed by excluding the date of communication of the order, i.e., 15 October 2025, in terms of Section 9 of the General Clauses Act, 1897. Consequently, the three-month statutory period commenced from 16 October 2025 and expired on 15 January 2026. The petitioner contended that the appeal, filed on 13 February 2026, involved a delay of only 29 days and therefore fell within the additional condonable period of one month available under Section 107(4).

However, the Appellate Authority calculated the limitation differently and concluded that there was a delay of 31 days beyond the permissible period. On that basis, it held that the appeal had been filed beyond the outer statutory limit and rejected it without examining the merits.

Issue:

Whether, for the purpose of computing the limitation period prescribed under Section 107(1) and the condonable period under Section 107(4) of the GST Act, the date of communication of the adjudication order is required to be excluded in terms of Section 9 of the General Clauses Act.

Held That:

The High Court held that the Appellate Authority had committed a manifest error in computing the limitation period under Section 107 of the GST Act. Referring extensively to Section 9 of the General Clauses Act, Section 12 of the Limitation Act and various decisions of the Supreme Court and High Courts, the Court reiterated that where limitation is prescribed “from” the date of communication of an order, the date of communication itself must be excluded and limitation begins to run from the following day.

Applying this principle, the Court held that the adjudication order was communicated on 15.10.2025 and therefore the limitation period commenced on 16.10.2025. The statutory period of three months expired on 15.01.2026 and the additional condonable period of one month expired on 15.02.2026. Since the appeal was filed on 13.02.2026, it was within the outer condonable period prescribed under Section 107(4). Consequently, the Appellate Authority’s finding that the appeal was beyond the statutory limit was legally unsustainable.

Case name: M/s. Mahesh Value Products Pvt. Ltd. Versus Chief Commissioner of CT & GST and others. dated 05.06.2026

To read the complete judgement 2026 Taxo.online 1602