2023 (10) TMI 860 - HC - GST

Refund claim - rejection on the ground that they were barred by limitation - HELD THAT - The impugned order was passed without considering the aforesaid order passed by the Hon ble Supreme Court as well as the notification dated 05.07.2022 issued by the Department, wherein it has been stated the period from 01.03.2020 to 28.02.2022 shall be excluded for computation of period of limitation for the purpose of filing refund application under Section 54 of the Act. This Court is inclined to set aside the impugned order passed by the first respondent and further, the second respondent is directed to process the revised refund applications filed by the petitioner and pass appropriate orders by taking into consideration of the order passed by the Supreme Court and the aforesaid notification issued by the Department, within a period of 30 days from the date of receipt of copy of this order after providing the opportunity to the petitioner. Petition disposed off.

Summary

Issues Involved:
The writ petition challenges the rejection of revised refund claims made by the petitioner on specific dates. The issues include the rejection of refund claims, the application of the period of limitation under the Central Goods and Services Tax Act, 2017, and the consideration of a notification excluding a specific period for computation of limitation for filing refund applications.

Rejection of Revised Refund Claims:
The petitioner, an Exporter, filed original refund applications within the prescribed time limit but they were returned due to defects. Subsequently, revised refund applications were filed, which were also rejected as being barred by limitation under Section 54(1) of the Act. The impugned order did not consider a notification issued by the Department excluding a specific period for limitation computation.

Application of Period of Limitation:
The petitioner filed original refund applications within the prescribed time limit but faced rejection due to defects. Revised refund applications were filed, and despite being within the limitation period, they were rejected on grounds of being time-barred. The impugned order failed to consider the exclusion of a specific period for computation of limitation for filing refund applications under Section 54 of the Act.

Consideration of Notification:
The Hon'ble Supreme Court had excluded a specific period for computation of limitation under any laws, including judicial or quasi-judicial proceedings. A subsequent notification by the Department reiterated this exclusion for filing refund applications under Section 54 of the Act. The impugned order did not take into account this notification, leading to the rejection of the revised refund applications.

Decision:
The High Court set aside the impugned order rejecting the revised refund applications and directed the concerned authority to process the applications within 30 days, considering the Supreme Court order and the notification excluding a specific period for limitation computation. The petitioner was to be provided with an opportunity during this process. The writ petition was disposed of with this direction.