Refund Claim Rejection Overturned as Supreme Court's COVID Limitation Period Extension Prevails Over Government Deadline

The HC set aside the rejection of petitioner's refund claim for tax period April 2018-February 2019. While respondents argued the application filed on 12.04.2021 exceeded the government's extended deadline of 31.03.2021, the Court ruled that the Supreme Court's order excluding limitation periods from 15.03.2020 to 02.10.2021 prevailed over government notifications. The petition was allowed, and the matter remanded to authorities for reconsideration of the refund claim on merits within two months.

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Issues:
Claim for refund rejection based on statutory period extension due to pandemic.

Analysis:
The petitioner sought relief against the rejection of the refund claim for the tax period April 2018 to February 2019. The rejection was based on the application being filed beyond the statutory period and not extended as per government notifications. The key issue was whether this rejection was justified.

The petitioner argued that due to the pandemic, the application could not be filed within the stipulated time frame, relying on a Supreme Court order extending the period of limitation. The Supreme Court's order excluded the period from 15.03.2020 to 02.10.2021, making the petitioner's filing on 12.04.2021 valid.

In response, the respondents contended that the application was filed after the extended period mentioned in the government notification, which was until 31.03.2021. They referenced a Central Government notification extending time until 31.03.2021 for activities between 20.03.2020 and 30.03.2021, arguing that the petitioner was not entitled to a refund.

After evaluating the submissions, the Court found the rejection of the claim unjustified. The Court emphasized that the Supreme Court's order on limitation periods prevailed over the government notification. As the petitioner's application fell within the period excluded by the Supreme Court, they were entitled to the benefit of the order.

Consequently, the impugned order was set aside, and the matter was remanded to the respondent to reevaluate the petitioner's claim based on the application filed on 12.04.2021. The Court directed prompt action within two months from the date of receiving the order copy, with no costs imposed. Any related pending petitions were also disposed of accordingly.

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