2023 (6) TMI 675 - HC - GST

Refund of Input Tax Credit - rejection on the ground of time limitation - Application filed beyond the period of two years from the relevant date as stipulated under Section 54 of the Central Goods Services Tax, 2017 - HELD THAT - The respondents has handed over a notification dated 05.07.2021 (Notification No.13/2022 Central Tax) issued by the Central Board of Indirect Taxes and Customs, whereby the period of limitation for filing an application for refund under Sections 54 and 55 of the CGST Act has been relaxed. In terms of the said notification, the period commencing from 01.03.2020 to 28.02.2022 is required to be excluded. The impugned orders are set aside and the petitioner s application is restored to the Assistant Commissioner, CGST, Division Mayur Vihar for deciding the same on merits within a period of six weeks from today - Petition allowed.

Summary

Issues involved: Impugning order rejecting refund claim for Input Tax Credit as time-barred, interpretation of limitation period under Section 54 of the CGST Act, effect of notification relaxing limitation period.

The petitioner challenged the order rejecting their claim for refund of Input Tax Credit (ITC) for April 2018 as time-barred. The Adjudicating Authority and the Appellate Authority held the application was beyond the two-year period specified under Section 54 of the CGST Act. However, a notification issued by the Central Board of Indirect Taxes and Customs relaxed the limitation period for filing refund applications under the CGST Act from 01.03.2020 to 28.02.2022. The respondents acknowledged that the petitioner's case fell within the scope of this notification and agreed that the claim should be considered on merits.

The High Court set aside the impugned orders and directed the petitioner's application to be restored for consideration on merits by the Assistant Commissioner, CGST, Division Mayur Vihar within six weeks. The petition was allowed accordingly.