2024 (6) TMI 1244 - HC - GST

Refund of input tax credit accumulated - time limitation - zero-rated supplies - Clause(e) of Explanation 2 to section 54 of the Central Goods and Service Tax Act, 2017 - HELD THAT - The petitioner was eligible for benefit of extended period granted vide Notification No. 13/2022 Central Tax dated 05.07.2022, whereby relaxation of COVID period from 01.03.2020 to 28.02.2022 was eligible for the period from June-2018 to Jan-2019. However, the notification dated 05.07.2022 was not in existence at the time of issuance of the impugned orders. The petition is allowed by directing the respondents to grant the benefit of Notification No. 13/2022-Central Tax dated 05.07.2022 whereby the relaxation of Covid period from 01.03.2020 to 28.02.2022 was eligible for period from April 2018 to January, 2019. It appears that notification dated 05.07.2022 was not available at the relevant time when the impugned orders were passed and therefore, benefits of the same were not given to the petitioner. Petition allowed.

Issues involved:
1. Refund of input tax credit under the Central Goods and Service Tax Act, 2017.
2. Application of time limits for filing refund claims.
3. Interpretation of Notification No. 13/2022-Central Tax dated 05.07.2022.
4. Judicial review under Article 227 of the Constitution of India.

Analysis:

1. Refund of input tax credit under the Central Goods and Service Tax Act, 2017:
The petitioner, a manufacturer of premium ceramics, exported goods without payment of duty and sought a refund of accumulated input tax credit. The petitioner availed input tax credit on various inputs like coal and filed a refund application for Rs. 36,30,286/- under section 54(3)(i) of the Act and Rule 89(1) of the Rules.

2. Application of time limits for filing refund claims:
The petitioner received a show cause notice questioning the timeliness of the refund claim. The Appellate Commissioner rejected the claim citing section 54(1) and section 54(3)(i) of the Act, emphasizing the two-year time limit from the date specified under Explanation 2(a) of section 54. The Commissioner also referred to the amended clause(e) of Explanation 2 to section 54, affecting the refund application.

3. Interpretation of Notification No. 13/2022-Central Tax dated 05.07.2022:
The petitioner invoked Notification No. 13/2022-Central Tax, which excluded the period from 01.03.2020 to 28.02.2022 for computing the limitation period for filing refund applications. The Court acknowledged the applicability of this notification to the case, providing relief to the petitioner for the period from April 2018 to January 2019.

4. Judicial review under Article 227 of the Constitution of India:
The Court allowed the petition, quashing the impugned orders and directing the respondents to grant the benefit of Notification No. 13/2022-Central Tax. The Court highlighted that the notification was not available when the original orders were passed, leading to the petitioner being deprived of its benefits. The judgment emphasized the importance of adhering to statutory timelines and considering subsequent notifications impacting refund applications.

In conclusion, the judgment addressed the issues of refund claims, time limits, statutory notifications, and the scope of judicial review under Article 227. It clarified the application of relevant provisions of the Central Goods and Service Tax Act, 2017, and highlighted the significance of timely compliance with statutory requirements and the impact of subsequent notifications on refund applications.

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