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of <h1>Refund Claim Not Barred by Limitation Under Sections 54 and 55 of CGST Act Due to Notification Exclusion</h1> <h3>Kavita Incorporation Versus Additional Commissioner CGST And CX, Appeals III, Mumbai And Anr.</h3> Kavita Incorporation Versus Additional Commissioner CGST And CX, Appeals III, Mumbai And Anr. - 2025:BHC - OS:12187 - DB ISSUES: Whether the refund application was barred by limitation under Section 52 of the Central Goods and Services Tax Act, 2017 ('CGST Act').Whether the period from 01 March 2020 to 28 February 2022 should be excluded in computing the limitation period for filing a refund application under Sections 54 or 55 of the CGST Act.Whether the petitioner was entitled to an opportunity to cure alleged procedural deficiencies before rejection of the refund application.Whether the decisions of the Hon'ble Supreme Court and the Bombay High Court regarding extension of limitation periods apply to the refund application in question.Whether the impugned orders rejecting the refund application on limitation grounds without considering relevant notifications and judicial decisions were legally sustainable. RULINGS / HOLDINGS: The refund application was initially filed within the prescribed period of limitation, but repeated re-filings due to alleged deficiencies were rejected without granting an opportunity to cure such deficiencies or hearing, violating principles of natural justice.The Notification dated 05 July 2022 excludes the period from 01 March 2020 to 28 February 2022 for computation of limitation under Sections 54 and 55 of the CGST Act, and therefore, the refund application could not be held barred by limitation.The 1st and 2nd Respondents erred in rejecting the refund application solely on limitation grounds without taking cognizance of the Notification dated 05 July 2022 and relevant Supreme Court and High Court decisions extending limitation periods.The Appellate Authority's reasoning for not applying the decisions of the Hon'ble Supreme Court and this Court was found to be unpersuasive.The impugned orders dated 27 October 2021 and 22 June 2022 are set aside, and the refund application is to be considered afresh on merits within 60 days, with due opportunity for the petitioner to be heard and respond to any show-cause notices. RATIONALE: The Court applied the statutory framework of the CGST Act, specifically Sections 52, 54, and 55, governing limitation periods for refund claims.The Court relied on Notification No. 13/2022 - Central Tax dated 05 July 2022, which excludes the period from 01 March 2020 to 28 February 2022 from limitation computation, reflecting a legislative intent to extend limitation due to extraordinary circumstances.The Court referred to authoritative judicial precedents, including the Hon'ble Supreme Court's decision in Re: Cognizance For Extension of Limitation (2022) 3 SCC 117 and the Bombay High Court's decision in Saiher Supply Chain Consulting Pvt. Ltd. v. Union of India, which recognized extensions of limitation periods during the COVID-19 pandemic.The Court emphasized the principle of natural justice, noting the absence of any opportunity granted to the petitioner to cure deficiencies or be heard before rejection of refund applications.No dissent or doctrinal shift was recorded; the Court's decision aligns with a purposive interpretation of limitation laws in light of the Notification and judicial precedents.
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