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2022 (11) TMI 785 - HC - GSTRejection of Refund claim - refund rejected on the ground that the application was filed beyond the relevant period under Section 54(1) of the Central Goods and Services Tax Act, 2017 - bar on extension of time limit by Circular No.157/13/2021-GST dated 20.07.2021 - HELD THAT - The Circular has been superseded vide Notification issued by the Government of India dated 05.07.2022, whereby, the time limit between 01.03.2020 to 28.02.2022 is directed to be excluded for computing the period of limitation for filing refund application under Sections 54 and 55 of the Act. The impugned order dated 21.01.2022 is liable to be set aside and accordingly, it is set aside. The Respondent shall consider the request / application for refund in terms of Sections 54 and 55 of the Act taking into account the Notification No.13 of 2022 Central Tax, dated 05.07.2022 and pass orders in accordance with law - Petition disposed off.
Issues:
Challenge to rejection of refund claim under Section 54(1) of the Central Goods and Services Tax Act, 2017 based on Circular No.157/13/2021-GST; Supersession of the Circular by a Government notification dated 05.07.2022 directing exclusion of time limit for filing refund application between 01.03.2020 to 28.02.2022; Setting aside of the impugned order dated 21.01.2022 and direction for reconsideration of refund application under Sections 54 and 55 of the Act in light of the new notification; Clarification on the direction in reference to a specific petition for refund extension. Analysis: The judgment pertains to two Writ Petitions challenging the rejection of a refund claim under Section 54(1) of the Central Goods and Services Tax Act, 2017, based on Circular No.157/13/2021-GST, which stated that the time limit for filing a refund application cannot be extended, even during a pandemic. The Petitioner and the Respondent both acknowledged that the Circular had been superseded by a Government notification dated 05.07.2022, which directed the exclusion of the time period between 01.03.2020 to 28.02.2022 for computing the limitation period for filing refund applications under Sections 54 and 55 of the Act. The Court, in light of the supersession of the Circular, set aside the impugned order dated 21.01.2022. The Respondent was directed to reconsider the request/application for refund in accordance with Sections 54 and 55 of the Act, taking into account the Notification No.13 of 2022 - Central Tax, dated 05.07.2022. The Court emphasized that the refund application should be processed as per the new notification. Regarding a specific petition (W.P.(MD)No.13191 of 2022), where a portion of the refund request had been extended, the Court clarified that the direction to set aside the impugned order was only applicable to the portion that had been rejected due to limitation issues. Consequently, the Court disposed of the Writ Petitions with no costs and closed the connected Miscellaneous Petitions.
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