Simplified Explanation of the Judgment
In a recent case, the Patna High Court addressed an important issue under the Goods and Services Tax (GST) law: how the deadline for filing an appeal should be calculated. The petitioner, a private limited company registered under GST laws, challenged a demand order issued by the tax department, which included tax, interest, and penalty for the period July 2017 to March 2018.
The company had filed a reply to the show-cause notice issued under Section 73(1) of the CGST/BGST Act but later received a final demand order on 27 December 2023. Due to the ill health of the company’s director, the appeal could only be filed on 26 April 2024—four months later.
The appellate authority rejected the appeal at the admission stage, claiming that it was filed beyond the allowed time—interpreting the statutory three-month appeal window plus one additional condonable month as exactly 120 days. According to the authority, this deadline had passed.
The petitioner argued that the authority misinterpreted the GST Act. Section 107(1) of the Act provides three months (not 90 days) from the communication of the order to file an appeal, and Section 107(4) allows an extension of one additional calendar month for sufficient cause. Therefore, the appeal filed on 26 April 2024 was still within the extended deadline.
The High Court thoroughly examined Supreme Court decisions and established principles of calculating time under statutes. It emphasized that when a law says “three months” or “one month,” it means calendar months—not 90 or 30 days. Relying on judgments like Econ Antri Ltd. v. Rom Industries Ltd., (2014) 11 SCC 769, and State of West Bengal v. Rajpath Contractors, the court concluded that the petitioner’s appeal was filed within the permissible extended timeframe.
The Court set aside the appellate authority’s order and directed it to consider the appeal on its merits after giving the petitioner a chance for a personal hearing.
Significance or Implication of the Judgment
This decision by the Patna High Court safeguards the right of taxpayers to appeal against GST assessments. It affirms that calendar months—not fixed day counts—must be used to calculate legal deadlines unless specifically stated otherwise. This prevents arbitrary rejections of appeals and upholds the principles of natural justice.
The ruling has significant implications for businesses and tax practitioners across Bihar and beyond. It ensures fairness in procedural matters and restricts the tax authorities from denying hearings based on a misreading of the law.
Legal Issue(s) Decided and the Court’s Decision
- Issue: Whether the statutory deadline of three months and one additional month for filing appeals under Section 107 of the CGST/BGST Act should be treated as fixed-day periods (90 and 30 days) or as calendar months.
- Decision: The Patna High Court held that these are to be interpreted as calendar months, and thus the appeal filed on 26 April 2024 was within the allowable time frame.
Judgments Referred by Parties
- State of Himachal Pradesh v. Himachal Techno Engineers, (2010) 12 SCC 210
- Bibi Salma Khatoon v. State of Bihar, (2001) 7 SCC 197
- Econ Antri Ltd. v. Rom Industries Ltd., (2014) 11 SCC 769
- State of Bihar v. Kalika Kuer @ Kalika Singh & Ors., (2003) 5 SCC 448
Judgments Relied Upon or Cited by Court
- Saketh India Ltd. v. India Securities Ltd., (1999) 3 SCC 1
- Tarun Prasad Chatterjee v. Dinanath Sharma, (2000) 8 SCC 649
- State of West Bengal v. Rajpath Contractors and Engineers Ltd., 2024 INSC 477
Case Title
M/s Brand Protection Services Private Limited v. State of Bihar & Ors.
Case Number
CWJC No. 14957 of 2024
Citation(s)– 2025 (1) PLJR 881
Coram and Names of Judges
Hon’ble Mr. Justice Rajeev Ranjan Prasad
Hon’ble Mr. Justice Ramesh Chand Malviya
Names of Advocates and who they appeared for
Mr. Anubhav Khowala, Advocate — for the Petitioner
Mr. Vivek Prasad, GP-7 — for the Respondents
Link to Judgment
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