Time limit for applying for refund of Coal Cess

[Yogesh Ashar]

Dear Sir / Madam

One of our Client is a manufacturing unit whose 60% products are exported with payment of Tax. There has been a contentious issue with regards to the refund of cess on Coal used in captive power. My query is whether the 2 years limitation for application of refund referred in Section 54(1) of the CGST Act shall apply from the date of order of Gujrat High court in case of Patson Papers (P.) Ltd. - 2025 (10) TMI 1123 - SC Order (SLP rejected on 27.10.2025) and another judgement in case of Atul Limited - 2025 (7) TMI 1768 - GUJARAT HIGH COURT dated 24.10.2025 [Gujarat High Court] or from the date of exports

 

[Shilpi Jain]

It would be from the date of the exports. The court has only made the position of the law clear and thereby it is so.

[KASTURI SETHI]

The date of export. Also see Clause (a) of Explanation 2 below Section 54(15) of the CGST Act.

[Sadanand Bulbule]

I endorse both replies.

[KASTURI SETHI]

Dear Sir Ji,

Thanks a lot for your stamp of approval.

 

 

[Yogesh Ashar]

Dear Seniors

Thanks a lot for your guidance

 

 

AI Summary

Limitation for GST refund starts from the date of exports, not from later judicial clarifications. The two year limitation for claiming a GST refund of coal cess used in captive power is to be calculated from the date of exports, with judicial decisions merely clarifying entitlement rather than creating a new commencement date for the limitation, and the statutory explanation to the refund provision supports this position.