Limitation for Appeal Runs from Communication of Service levy Adjudication Order: Karnataka HC Quashes Garnishee Order [Read Order]

Quashing the garnishee order, the Karnataka High Court ruled that the limitation period for filing an appeal runs from the date of communication of the service tax adjudication order.

The petitioner’s, M/s Droplet Offshore Services Private Limited, grievance is with regard to the issuance of the recovery notice in Form GST DRC-13, without furnishing a copy of the adjudication order. L.S. Karthikeyan,the counsel for the petitioner, submitted that the petitioner’s grievance would be redressed if the respondent is directed to furnish a copy of the adjudication order and withdraw the recovery notice, thereby enabling the petitioner to avail the appellate remedy against the order. It was further argued that the petitioner had duly updated its registered address in the year 2023, whereas the adjudication order was communicated to its erstwhile address, thereby depriving the petitioner of the opportunity to avail the appellate remedy and resulting in the issuance of the recovery notice.

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Also Read:Creating Artificial Cause of Action to Extend Limitation Period of Income Tax Assessment: Gujarat HC Quashes Valuation Reference As Colorable Exercise [Read Order]Aravind V. Chavan, the counsel for the respondent, submitted that the adjudication order has since been uploaded and a copy thereof has also been furnished to the counsel for the petitioner. Justice B M Shyam Prasad observed that “This Court must opine that the petitioner, because of certain circumstances as of the date of the notice, may have come to know about the Show Cause Notice and participated in the proceedings, but that cannot be held against the petitioner to infer knowledge of the Adjudication Order as of its date.