Date of Rectification Order is the Relevant Date for Calculating Limitation Period for Filing Appeal
The Hon’ble Madras High Court (Madurai Bench) in the case of M/s. SPK and Co. v. State Tax Officer [W.P. (MD) No. 27787 of 2024, dated November 22, 2024] held that the limitation period for filing an appeal against an assessment order will start from the date of the rectification order, not the original assessment order.
Key Points from the Judgment
- Facts of the Case:
M/s. SPK and Co. (“the Petitioner”) filed a writ petition against the assessment and rectification orders passed by the State Tax Department due to vague Show Cause Notices (SCN).
The Petitioner expressed apprehension that the appellate authority might calculate the limitation period from the date of the original assessment order, rendering the appeal time-barred.
- Legal Issue:
Whether the limitation period for filing an appeal begins from the date of the original assessment order or the rectification order?
- Court’s Decision:
The limitation period for filing an appeal must be calculated from the date of the rectification order, as it was the final order passed by the authority.
- Precedent Reference:
The Court relied on the principle established in TVL. SKL Exports v. State Tax Officer and Others (W.P. No. 6825 dated March 14, 2024), which held that the rejection of a refund application, or rectification order, is the relevant date for calculating the limitation period for appeal.
Implications
This ruling provides relief to taxpayers by:
Allowing them to calculate the limitation period from the rectification order date, which provides clarity and avoids time-barred appeals.
Reinforcing the principle of fairness by ensuring taxpayers are not penalized for delays caused by departmental rectification orders.
Our Comments
The judgment highlights the importance of determining the “relevant date” for calculating the limitation period in tax matters. This decision strengthens taxpayers’ rights to a fair opportunity for appeal and aligns with principles of natural justice.
