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2022 (7) TMI 1425 - JHARKHAND HIGH COURTRejection of refund claim on the account of being time barred - application for refund made on 28-5-2021 for the tax period May 2018 to July 2018 was time barred or not? - period of limitation prescribed under section 54(1) of the CGST Act, 2017 stood extended in view of the order dated 23-3-2000 passed by the Apex Court in Suo Motu Writ Petition (Civil) No. 3/2020 and successive orders or not. HELD THAT:- Various High Courts have decided the issue in favour of the Assessee on the same question of applicability of the period of limitation in making refund application such as, Madras High Court in W.P No. 18165 & 18168 of 2021 [2021 (11) TMI 973 - MADRAS HIGH COURT] and analogous cases dated 28-9-2021 M/s GNC Indra LLP Rep. by Partner/Authorized Signatory versus Assistant Commissioner (Circle), High Court of Bombay in Writ Petition (L) No. 1275/2021 dated 10-1-2022 Saiher Supply Chain Consulting Pvt. Ltd. v. The Union of India and Ors. [2022 (1) TMI 494 - BOMBAY HIGH COURT] and High Court of Allahabad in Writ Tax No. 173/2022 dated 3-3-2022 in Gamma Ganna Limited v. Union of India and Ors. [2022 (3) TMI 578 - ALLAHABAD HIGH COURT] - By the aforesaid decisions, it has been held that the order passed by the Apex Court in Suo Motu Writ Petition (Civil) No. 3/2020 IN RE COGNIZANCE FOR EXTENSION OF LIMITATION [2021 (5) TMI 564 - SC ORDER] would govern the application for refund made under the GST Act - the views of jurisdictional High Courts are agreed upon. As per the Scheme of CGST Act and Rules, any such application for refund has to be processed within the time period and in case such refund application is to be rejected, a proper show-cause notice in Form-GST-RFD-08 has to be issued before the order of rejection containing the grounds is passed in Form-GST-RFD-06 i.e. with due opportunity to the person/Assessee. It therefore, clearly shows that the proceedings are in the nature of quasi-judicial proceeding which also get the benefit of extension of time limit, as per the orders passed by the Apex Court in Suo Motu Writ Petition from time to time. CBIC Circular dated 20-7-2021, cannot narrow down the scope of the order passed by the Apex Court in Suo Motu Writ Petition (Civil) No. 3/2020 under Article 32 of the Constitution of India. The rejection of the refund application by the impugned order at Annexure-5 dated 1-7-2021 is set aside. The matter is remanded to the Respondent No. 3 to take a fresh decision in accordance with law, after giving due opportunity of hearing, if necessary - petition allowed by way of remand.
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