Show Cause Notice Issued Rejecting Refund Time Barred

[I Bhasin]

We filed our Refund Application in the time limit as notified in Circular 35/2020 & 55/2020. We were issued Deficiency Memo's 3 times on 14th, 15th and 16th day from date of filing our application. Finally we were issued acknowledgment RFD-02 for our application 4th time followed by a Show Cause Notice issued on 60th day rejecting our refund on the grounds of Time Barred.

We were informed earlier by an Officer that since our 1st application was filed within due time our refund wouldn't be time barred. Just wanted to know if there is any Notification or Circular issued in this regard to so that we can mention the same in our SCN.

AI Summary

Refund time bar: whether refiling after deficiency memos preserves limitation or is treated as a fresh barred application.
The issue is whether re-filing a refund application after receiving deficiency memos preserves or restarts the statutory limitation for refunds. Circular 125 para 8 is cited as excepting refilings following deficiency memos from chronological limitation, while Rule 90(3) of the CGST Rules treats rectified filings as fresh applications. Administrative rejections under RFD-06 citing time bar and missing attachments are reported, and judicial relief by writ petition is suggested to challenge the rule-based treatment of refilings.