2022 (10) TMI 1127 - HC - GST

Refund claim - time limitation - time prescribed under Section 54 of the CGST and APSGST Acts - HELD THAT - The extension of time granted by Hon ble Supreme Court was only in respect to appeals, but the same is not applicable to any proceedings under GST laws. Recently, the Government of India, Ministry of Finance, Department of Revenue, Central Board of Indirect Taxes and Customs issued Notification No.13/2022-Central Tax dated 05.07.2022 which clearly postulates that the period from 1 st March, 2020 to 28th February, 2022, computation shall stand excluded while computing the period of limitation for filing refund application under Section 54 or Section 55 of the said Act - it cannot be said that the application for refund was made beyond the period of limitation. Hence, the order under challenge is set aside and the matter is remanded back to respondent No.1, for fresh consideration in accordance with law. Petition allowed by way of remand.

Summary

Issues:
1. Refund application rejection on the ground of limitation under CGST and APSGST Acts.
2. Interpretation of relevant dates and timelines for filing refund claims.
3. Applicability of Supreme Court verdict on refund claims under GST laws.
4. Impact of recent notification excluding certain periods for limitation computation.

Analysis:
The petitioner filed a Writ Petition challenging the rejection of their refund application as time-barred under Section 54 of the CGST Act and APSGST Act. The petitioner claimed entitlement to a refund of tax paid and initially filed separate applications for different months. However, respondent No.1 issued deficiency memos alleging lack of supporting documents. The petitioner then filed a consolidated refund application, but subsequent deficiency memos were issued for the same reason. The final rejection of the refund application was based on the ground of limitation, dated 17.06.2021.

The Refund Rejection Order highlighted discrepancies in the petitioner's submissions, noting that corrected refund applications must be submitted within 2 years of the relevant date. The order also clarified that the extension granted by the Supreme Court was only applicable to appeals and not to proceedings under GST laws. However, a recent notification excluded certain periods from the computation of the limitation period for filing refund applications under Section 54 or Section 55 of the Act. Consequently, the High Court set aside the rejection order, remanding the matter back to respondent No.1 for fresh consideration in line with the law.

The judgment emphasized the importance of adhering to prescribed timelines for filing refund claims under GST laws. It clarified the distinction between timelines for appeals and proceedings under GST laws, as per the Supreme Court verdict. The impact of the recent notification, which excluded specific periods for limitation computation, played a crucial role in overturning the rejection of the refund application. Ultimately, the Writ Petition was allowed, with no order as to costs, and any pending miscellaneous petitions were closed in relation to the case.