Facts of the Case: NTC Infrastructure and Engineering Pvt. Ltd. challenged an assessment order dated 10.12.2024 passed under Section 73 of the GST enactments after its rectification request against that order was rejected on 11.04.2025. In an earlier, similar matter involving the very same petitioner (W.P.(MD) Nos. 16184 and 16185 of 2025), the Madras High Court had, on 16.06.2025, granted liberty to challenge an assessment order by invoking the principle underlying Section 14 of the Limitation Act, 1963 — which excludes time spent bona fide pursuing another remedy.

Issues Involved:

  1. Whether an assessee who has pursued a rectification application before challenging an assessment order in appeal should get the benefit of the principle under Section 14 of the Limitation Act while computing the appeal timeline.

Petitioner's Arguments:

  • Having earlier obtained liberty on identical facts in its own connected matters, the petitioner sought a similar direction permitting it to file a statutory appeal against the present assessment order, invoking Section 14 of the Limitation Act.

Respondent's Arguments:

  • No distinguishing submission was recorded; the Government Advocate did not dispute that the facts mirrored the earlier matter already decided by the Court.

Court Order / Findings:

  • Finding no reason to take a different view from its own earlier order on identical facts, the Court granted the petitioner liberty to file an appeal before the Appellate Authority against the assessment order, subject to making the pre-deposit required under Section 107 of the respective GST enactments, within 30 days.
  • Any tax already paid by the petitioner, in whole or part, was directed to be credited towards the pre-deposit requirement.
  • If the appeal was filed within the time granted, the Appellate Authority was directed to consider it on merits and dispose of it expeditiously.

Important Clarification:

  • Where an assessee has bona fide pursued a rectification application against an assessment order before approaching the appellate forum, courts may extend the benefit of the principle underlying Section 14 of the Limitation Act to permit a fresh, timely appeal against that order — treating the time spent in the rectification process as excludable, provided the pre-deposit under Section 107 is duly made.

Sections Involved:

  • Section 73, GST Act, 2017 — assessment provision under challenge.
  • Section 107, GST Act, 2017 — statutory appeal and pre-deposit requirement.
  • Section 14, Limitation Act, 1963 — exclusion of time spent bona fide pursuing another remedy.

Decision – In Favour of: Assessee (procedural liberty to appeal).

Case Details: Madurai Bench of Madras High Court; W.P.(MD) No. 20252 of 2025 & W.M.P.(MD) Nos. 15634 and 15636 of 2025; Coram: Hon'ble Mr. Justice C. Saravanan; Date of Order: 28.07.2025.

Link to Download the Order

Click here to view/download the full order

Disclaimer

This content is shared strictly for general information and knowledge purposes only. Readers should independently verify the information from reliable sources. It is not intended to provide legal, professional, or advisory guidance. The author and the organisation disclaim all liability arising from the use of this content. The material has been prepared with the assistance of AI tools.