Covid-19 limitation exclusion applies to refund claims, so a time-bar rejection could not stand.

The refund claim was filed beyond the ordinary two-year limitation period, but the Covid-19 exclusion period from 15.03.2020 to 28.02.2022 had to be left out while computing limitation for refund applications under the applicable refund provision. On that basis, the time-bar rejection could not be sustained. The High Court set aside the rejection of the refund application and remitted the matter for fresh decision in accordance with law.

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Issues: Whether the rejection of the refund application as time-barred was sustainable in view of the exclusion of the Covid-19 period for computation of limitation under the refund provisions.

Analysis: The refund claim was filed beyond the ordinary two-year limitation counted from the relevant date. The exclusion of the period from 15.03.2020 to 28.02.2022, as directed for limitation purposes and reflected in the Board's circular, required that the intervening Covid-19 period be left out while computing limitation for refund claims under the applicable refund provision. In that light, the original rejection on limitation could not stand.

Conclusion: The rejection of the refund application was set aside and the matter was remitted for fresh decision in accordance with law, in favour of the petitioner.

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