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GST refund rejection overturned for ignoring Covid limitation exclusion under Section 54; authority directed to reconsider within 30 days HC set aside the order rejecting the petitioner's GST refund claims as time-barred. The HC held that the authority failed to consider the SC's order and ...
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GST refund rejection overturned for ignoring Covid limitation exclusion under Section 54; authority directed to reconsider within 30 days
HC set aside the order rejecting the petitioner's GST refund claims as time-barred. The HC held that the authority failed to consider the SC's order and the departmental notification dated 05.07.2022, which mandated exclusion of the period from 01.03.2020 to 28.02.2022 when computing limitation for refund applications under Section 54 of the CGST Act due to the Covid-19 disruption. The matter was remitted, directing the competent authority to process the revised refund applications afresh, consider the extended limitation, and pass orders within 30 days after hearing the petitioner.
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.
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