Facts of the Case

The dispute concerns the commencement of the limitation period prescribed under Section 107 for filing an appeal against GST adjudication orders.

The Allahabad High Court had held that the mere uploading of show cause notices (SCNs) or adjudication orders on the GST common portal does not, by itself, amount to valid and effective “communication” of such orders for the purpose of triggering the limitation period under Section 107.

The High Court observed that limitation would commence only when there is actual or constructive communication in accordance with the modes prescribed under Section 169 of the GST law.

The State of Uttar Pradesh challenged the High Court judgment before the Supreme Court by filing a Special Leave Petition (SLP).

 

Issues Involved

  1. Whether mere uploading of a show cause notice or adjudication order on the GST common portal constitutes valid communication for the purpose of commencing limitation under Section 107 of the GST Act.
  2. Whether limitation for filing an appeal under Section 107 begins only upon actual or constructive communication in terms of Section 169.
  3. Where communication is claimed through both electronic and physical modes, which date should be considered for computing limitation.

 

Petitioner’s Arguments (Revenue)

  • The Revenue challenged the Allahabad High Court judgment before the Supreme Court.
  • It sought interference with the finding that uploading documents on the GST portal does not constitute effective communication for limitation purposes.
  • The Revenue contended that the High Court’s interpretation could adversely affect the statutory framework governing electronic communication under the GST regime.

 

Respondent’s Arguments

  • The respondent relied upon the High Court's reasoning that limitation cannot commence merely upon portal uploading unless communication is effected in accordance with Section 169.
  • It was contended that taxpayers must receive actual or legally recognized constructive communication before the limitation period under Section 107 can begin to run.

 

Court Order / Findings

The Supreme Court:

  • Issued notice in the Special Leave Petition filed by the Revenue.
  • Stayed the operation of the Allahabad High Court judgment till the next date of hearing.

As a result, the legal position declared by the Allahabad High Court regarding commencement of limitation under Section 107 based on communication under Section 169 shall remain stayed pending further consideration by the Supreme Court.

 

Important Clarification

The Allahabad High Court had previously held that:

  • Mere uploading of SCNs or adjudication orders on the GST common portal does not automatically amount to effective communication.
  • Limitation under Section 107 commences only upon actual or constructive communication strictly in accordance with Section 169.
  • To avoid disputes regarding the starting point of limitation, where communication is claimed through both electronic and physical/offline modes, the date of communication through physical/offline mode should prevail over the electronic mode, unless the contrary is established by either party.

However, the operation of the above findings has presently been stayed by the Supreme Court through its order dated 29.05.2026.

 

Sections Involved

  • Section 107 of the CGST Act/UPGST Act, 2017 – Appeals to Appellate Authority and limitation period.
  • Section 169 of the CGST Act/UPGST Act, 2017 – Service of notice, order, summons, communication and decisions.