2022 (4) TMI 1345 - HC - GST

Rejection of refund claim - time limitation - relevant date - explanation (2) of Section 54 of the Central Goods and Service Tax Act, 2017 - HELD THAT - The information available before this Court, in clear and vivid terms, reveals that seeking refund of the amount for the period, commencing from April, 2018 to March, 2019, the petitioner herein made an application on 13.03.2021 and there is absolutely no dispute with regard to either submission of the said claim or the receipt of the same by the respondent-authorities. It is also not in dispute that the petitioner herein filed a detailed reply on 02.04.2021 in response to the show cause notice dated 26.03.2021. A reading of the said reply shows that the petitioner herein also referred to the orders of the Hon ble Supreme Court in IN RE COGNIZANCE FOR EXTENSION OF LIMITATION 2021 (3) TMI 497 - SC ORDER . A perusal of the order under challenge shows that as per the provisions of the statute, in order to get entitlement for refund of the period from April, 2018 to March, 2019, one should have filed an application on or before 19.05.2020. But in the present case, the petitioner herein filed such application on 13.03.2021. It is very much apparent from the order of the Hon ble Apex Court in IN RE COGNIZANCE FOR EXTENSION OF LIMITATION 2021 (3) TMI 497 - SC ORDER , that while computing the period of limitation for any suit, appeal, application or proceeding, the period from 15.03.2020 till 14.03.2021 is liable to be excluded. In view of the said order of the Hon ble Supreme Court and if the said period is excluded from computation of the period of limitation, the entire claim of the petitioner herein is liable to be accepted. The matter is remanded to the said extent for consideration and for passing appropriate orders by taking into consideration the directions of the Hon ble Supreme Court in the order in the Suo Motu Writ Petition - Petition allowed.

Summary

Issues involved:
Challenge to the rejection of refund claim by the Deputy Commissioner of Central Tax for the tax period from April 2018 to January 2019 under Section 54 of the Central Goods and Service Tax Act, 2017.

Analysis:

1. The petitioner, engaged in the business of processing raw granite blocks and exporting polished granite slabs/tiles, filed a refund claim of ?46,72,862 for the period from April 2018 to March 2019. The Deputy Commissioner rejected the claim, allowing only ?6,07,516 for the period from February 2019 to March 2019. The petitioner challenged this rejection, arguing that it contravened Section 54 of the CGST Act and Rule 89(5) of the CGST Rules.

2. The petitioner's counsel contended that the Deputy Commissioner failed to consider the Supreme Court's order in a related case and a previous decision by the High Court that set aside a similar order for fresh consideration. The respondent's counsel argued that the petitioner's delay in filing the claim disentitles them to relief under Article 226 of the Constitution.

3. The Court noted that the petitioner filed the refund claim on 13.03.2021, responding to a show cause notice dated 26.03.2021, and cited the Supreme Court's order excluding the period from 15.03.2020 to 14.03.2021 for limitation purposes. As per this exclusion, the petitioner's claim should be accepted. The Court highlighted that the Deputy Commissioner did not consider this directive in their decision.

4. Consequently, the Court allowed the petition, setting aside the Deputy Commissioner's order rejecting the claim for the period from April 2018 to January 2019. The matter was remanded for fresh consideration, emphasizing compliance with the Supreme Court's directions in the order dated 08.03.2021. No costs were awarded for the petition, and pending interlocutory applications were closed.