Time spent pursuing a rectification application under Section 161 of the CGST Act, is excluded while computing the limitation period for filing appeal

Last updated: 24 October 2025

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The Punjab & Haryana High Court has ruled that the time spent by a taxpayer waiting for a decision on a rectification application filed under Section 161 of the CGST Act should be excluded when calculating the limitation period for filing an appeal. The court found that the appellate authority wrongly dismissed an appeal as time-barred without considering this exclusion, especially when the taxpayer acted promptly and without any mala fide intent. This decision offers procedural relief to taxpayers acting in good faith.

Court :
Punjab & Haryana High Court

Brief :
The Hon'ble Punjab & Haryana High Court in Arvind Fashion Limited v. State of Haryana & Ors.[CWP 16286-2025, order dated September 26, 2025] held that when an assessee promptly files a rectification application against an assessment order, the period spent awaiting decision on rectification is to be excluded from the limitation period for filing appeal under Section 107 CGST Act. The appellate authority erred in holding the appeal time-barred by not considering this exclusion. Where there is no mala fide or delay attributable to the assessee, time awaiting rectification decision is to be discounted.

Citation :
CWP 16286-2025, order dated September 26, 2025

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Attached File : 671907_5885_ph_hc_arvind_fashion_limited.pdf

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Judgement posted by

Bimal Jain

Service

FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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