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2024 (2) TMI 598 - HC - GSTSeeking refund of accumulated input tax credit - application rejected on the ground that the same was filed belatedly - Respondent No. 3 rejected the application solely on the ground that petitioner had not responded to the Show Cause Notice - Violation of principles of natural justice - HELD THAT - It is relevant to note that after the impugned order was passed, the Central Board of Indirect Taxes and Customs issued a Notification dated 05.07.2022 in line with the orders passed by the Hon ble Supreme Court in IN RE COGNIZANCE FOR EXTENSION OF LIMITATION 2021 (3) TMI 497 - SC ORDER . In terms of the said circular, the Board directed that the period from 01.03.2020 to 28.02.2022 is excluded for purposes of computing the period of limitation, inter-alia, for applications filed under Section 54 of the Central Goods and Services Tax Act, 2017. By virtue of the said circular, petitioner s application for refund would be within the period of limitation. Considering the peculiar circumstances of this case, where the benefit of exclusion of the period from 01.03.2020 to 28.02.2022 has been made available subsequent to the impugned order rejecting the application for refund, this Court considers it apposite to allow the present petition and remand the matter to Respondent No. 3 to consider the petitioner s application afresh in the light of the circular dated 05.07.2022 - Respondent No. 3 shall process the application of the petitioner for refund as expeditiously as possible and, in any event, within a period of eight weeks from today. Petition disposed off.
Issues involved:
The issues involved in this case are the rejection of the application for refund of accumulated input tax credit (ITC) by Respondent No. 2 on the ground of delay, the failure of the petitioner to respond to the Show Cause Notice, and the subsequent issuance of a circular by the Central Board of Indirect Taxes and Customs excluding a specific period for computing the period of limitation for such applications. Details of the Judgment: 1. The petitioner challenged the order dated 27.07.2022, which rejected the application for refund of ITC relating to tax periods July 2020 to December 2020. The Respondent issued a Show Cause Notice proposing rejection due to delay, to which the petitioner did not respond. The rejection was solely based on the lack of response to the notice. 2. After the impugned order, a circular was issued excluding the period from 01.03.2020 to 28.02.2022 for computing the period of limitation for applications under the Central Goods and Services Tax Act, 2017. This circular made the petitioner's application fall within the period of limitation. 3. An appeal against the order was dismissed on the ground of limitation, along with four other similar appeals. The petitioner approached the court regarding these appeals, and orders of remit were passed in their favor. 4. Considering the circumstances and the circular issued post the rejection of the application, the Court decided to allow the petition and remand the matter to Respondent No. 3 for a fresh consideration of the application in light of the circular dated 05.07.2022. 5. Respondent No. 3 was directed to process the petitioner's application for refund expeditiously, within a period of eight weeks from the date of the judgment. The petition was disposed of accordingly.
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