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CESTAT Rules Two Months Means Calendar Months Under S. 85(3A)
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CESTAT Rules Two Months Means Calendar Months Under S. 85(3A)

July 4, 2026

The CESTAT has clarified that the limitation period under Section 85(3A) should be counted in calendar months rather than in days. This ruling remands the appeal for a decision on its merits.

CESTAT Clarifies Limitation Period Under Section 85(3A)

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has ruled that the limitation period specified under Section 85(3A) of the Finance Act should be interpreted as calendar months. This interpretation diverges from the conventional understanding that limits could be calculated in days and may significantly impact various tax appeals.

Under Section 85(3A), the law explicitly states the timeframe for certain actions to be taken by the parties involved. In its order, the CESTAT highlighted the importance of consistency in legal interpretations regarding time limits to avoid ambiguity and ensure fair trial processes.

The tribunal stated, "Limitation under Section 85(3A) has to be counted by calendar months."

This ruling emphasizes the need for practitioners to accurately track timelines in tax-related matters, particularly in scenarios where calculation discrepancies could affect appeals. Taxpayers and representatives must ensure comprehensive documentation is prepared to align with these specifications.

Citations

  • Union of India v. CESTAT (2026) 3 ELT 456
Practice Areas:tax

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