AAAR dismissed the company’s GST appeal solely because it was filed beyond the legal time limit, without examining the actual tax issue involved.
Saloni Kumari | Feb 12, 2026 |
AAAR Rejects Company’s GST Appeal Over 250-Day Delay Without Examining Merits
The Odisha Appellate Authority for Advance Ruling (AAAR) has dismissed the appeal of a company on the grounds that the appeal was furnished beyond the statutory time limit prescribed under subsection (2) of section 100 of the CGST Act, 2017, without examining the key issue involved.
M/s. Essel Mining & Industries Limited (Appellant) has furnished an appeal before the Odisha Appellate Authority for Advance Ruling (AAAR) Goods and Services Tax (GST) under section 100 of the Central Goods and Services Tax Act, 2017, and the Odisha Goods and Services Tax Act, 2017.
The appellant company is engaged in the business of “Mining and Supply” of iron and manganese situated in the Joda Mining sector of Kendujhar, bearing GSTIN 21AAACE6607L1ZU, and possesses a principal place of business at Plot No. 7/43, Khata No. 244/122, Basantapur Talasahi, Dabuna, Kendujhar-758086. The appeal has been filed challenging an Advance Ruling order No. 01/ODISHA-AAR/2024-25 dated August 27, 2024, given by the Odisha Authority for Advance Ruling (AAR).
The appellant company had sought the present Odisha Appellate Authority for Advance Ruling (AAAR) to clarify the following question:
“Question: Whether handover of Building and Civil Structure, including railway siding, by the appellant to OMCL is tantamount to sale of building and covered under clause no. 5 to Schedule III of the CGST Act, 2017″
When the Odisha Appellate Authority for Advance Ruling (AAAR) examined the facts of the case, it noted that the company’s mining lease was from 01.10.1984 to 31.03.2020 (extended). Meaning the lease had expired in March 2020. The appellant company treated the transfer of buildings as a sale of immovable property, which is not considered a supply under the GST law. However, the Odisha AAR earlier held that the transaction was a supply of service taxable at 18%, which ultimately led the company to file an appeal.
However, the AAAR noted that the company was communicated with about the AAR order on August 28, 2025; however, the company furnished an appeal before the AAAR challenging the same on May 05, 2025, which is late by about 250 days. According to the provisions of subsection (2) of section 100 of the CGST Act, 2017, any appeal filed challenging an AAR order must be filed within 30 days of receiving it; a maximum extension of a further 30 days is allowed.
However, the appellant company argued that the delay was not intentional; the delay occurred due to legal consultations with Odisha Mining Corporation and confusion about whether the appeal should be filed online or manually. However, the AAAR asserted that the law allows manual filing and that the delay in the present appeal cannot be condoned.
Since the delay exceeded the permitted limit, the AAAR dismissed the appeal purely on limitation grounds without discussing the merits of the GST dispute.
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