Facts of the Case:

The petitioner was subjected to an adjudication order dated 02.02.2024 passed under Section 74 of the HGST Act for AY 2017–18, creating tax liability. Aggrieved, the petitioner filed a rectification application under Section 161 on 27.02.2024 seeking correction of errors in the adjudication order.

While the rectification application was pending, the petitioner initially approached the High Court, but was relegated to avail statutory remedies. Thereafter, the petitioner filed an appeal on 13.08.2024 along with an application for condonation of delay, specifically bringing to the notice of the Appellate Authority that the rectification application was still pending.

However, without deciding the rectification application, the Appellate Authority dismissed the appeal on 19.09.2024 on the ground of delay. The petitioner challenged this dismissal before the High Court, contending that the appeal ought not to have been decided while the rectification application was pending.

Issue:

Whether the Appellate Authority is justified in dismissing an appeal on the ground of delay without first deciding a pending rectification application under Section 161 relating to the same adjudication order?

Held That:

The Court held that the action of the Appellate Authority in dismissing the appeal during the pendency of the rectification application was improper. It observed that before adjudicating the appeal, it was necessary and desirable for the authority to first decide the rectification application, as the outcome of such application could have a direct bearing on the adjudication order and the necessity or scope of the appeal.

Taking note of the State’s submission that the rectification application had remained undecided due to being misplaced, the Court set aside the appellate order dated 19.09.2024. It directed the authorities to decide the rectification application dated 27.02.2024 afresh, after granting an opportunity of personal hearing and by passing a reasoned order. The exercise was directed to be completed within a stipulated time period.

Case Name: JVT Trading Private Limited Versus State of Haryana And Others. dated 07.04.2026

To read the complete judgement 2026 Taxo.online 910