Limitation for refund claims is extended to the next working day when the last date falls on a holiday or weekend.

Where the last permissible date for filing a refund application under Notification No. 12/2013-ST fell on a weekend and a government holiday, Section 10 of the General Clauses Act, 1897 was applied to permit filing on the next working day when the office reopened. On that basis, the limitation objection could not be sustained solely because the prescribed date coincided with office closure. The refund rejection was therefore treated as unsustainable on limitation grounds, and the claim was regarded as eligible for refund with applicable interest.

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Issues: Whether the refund claim under Notification No. 12/2013-ST was barred by limitation when the prescribed last date fell on a weekend and a government holiday, and whether the refund rejection on that ground was sustainable.

Analysis: The refund application was required to be filed by the last permissible date under the notification, but that date fell after two weekend days and on a government holiday. In such circumstances, the computation of time under Section 10 of the General Clauses Act, 1897 applied so that the act could be done on the next working day when the office reopened. The rejection order was founded solely on limitation and did not survive once the closure of the office on the last day was taken into account.

Conclusion: The limitation objection was rejected, and the refund claim could not be denied on that ground.

Final Conclusion: The refund rejection was set aside and the assessee was held entitled to the sanctioned refund with applicable interest.

Ratio Decidendi: Where the last permissible date for filing a refund application falls on days when the office is closed, Section 10 of the General Clauses Act, 1897 permits filing on the next working day, and the claim cannot be rejected as time-barred solely for that reason.

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