Covid-19 Limitation Extensions Validate Timely Tax Refund Claims, Directing Reassessment of Previously Rejected Applications

The HC allowed the petitioner's challenge to refund application rejections, finding the claims were timely filed considering Covid-19 limitation extensions. The court set aside the original rejection orders and directed the Assistant Commissioner to reassess the refund applications within three months, disregarding previous delay objections.

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Issues involved:
The judgment deals with the rejection of refund applications by the petitioner for the tax periods of April 2018 to March 2019 and April 2019 to June 2019, citing delay as the reason.

Details of the judgment:

Issue 1: Refund applications rejection
The petitioner filed refund applications for the mentioned tax periods, which were rejected due to delay in submission. The court noted that the claims for refund should have been made within two years from the relevant date of export, i.e., by 2020 and 2021. However, considering the impact of the Covid-19 pandemic and the subsequent suspension of limitations, the applications were filed within the extended timeline. The court referred to a previous judgment to support the petitioner's position.

Issue 2: Legal position and decision
The court clarified that the applications for refund were filed within the permissible timeline, and the rejection based solely on delay cannot be upheld. The counsel for the revenue acknowledged the undisputed dates and agreed not to contest further. Consequently, the court set aside the orders rejecting the refund applications and remitted the matter to the Assistant Commissioner to reevaluate the applications without considering the delay objection. The court directed for a prompt resolution within three months, allowing the petitioner an opportunity to respond if any part of the claim faces rejection.

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