Refund limitation under section 54 must exclude the COVID-19 period when computing timeliness of claims.

Refund claims under section 54 must be tested against the limitation period after excluding the COVID-19 period from 1 March 2020 to 28 February 2022. Applying an earlier Division Bench order on identical facts, the Rajasthan High Court found the rejection of the refund application unsustainable because the relevant filing date was March 2018 and the limitation computation had to reflect the excluded period. The impugned order was set aside and the refund application was directed to be decided afresh in accordance with law.

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Issues: Whether the rejection of the refund application deserved to be set aside and the matter remitted for fresh consideration in view of the limitation under section 54 and the exclusion of the COVID-19 period.

Analysis: The petition was found to be covered by an earlier Division Bench order in identical facts. The relevant date for the refund claim was March 2018 and the limitation under section 54 stood affected by the exclusion of the period from 1 March 2020 to 28 February 2022 for computation of limitation. In view of the binding effect of the earlier order and the exclusion directed for the limitation period, the impugned order could not be sustained.

Conclusion: The impugned order was set aside and the respondents were directed to decide the refund application afresh in accordance with law.

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