High court set-asides the order for rejection of GST Refund.
Facts
The refund application being application dated 19.04.2021 has been made under Section 54 of CGST Act. The refund sought for pertains to June of 2018 and August of 2018.
The impugned orders say that refund applications should have been made within two years from the relevant date. i.e., for June 2018 refund elapsed in July of 2020 and with regard to August 2018 refund elapsed in August of 2020.
The Petitioner contended that, the Petitioner has the benefit of Suo-motu order of Hon’ble Supreme Court of India in Re: Cognizance for extension of limitation [Miscellaneous Application No. 665/2021 in SMW(C) No. 3/2020, dated April 27, 2021].
Facts
The refund application being application dated 19.04.2021 has been made under Section 54 of CGST Act. The refund sought for pertains to June of 2018 and August of 2018.
The impugned orders say that refund applications should have been made within two years from the relevant date. i.e., for June 2018 refund elapsed in July of 2020 and with regard to August 2018 refund elapsed in August of 2020.
The Petitioner contended that, the Petitioner has the benefit of Suo-motu order of Hon’ble Supreme Court of India in Re: Cognizance for extension of limitation [Miscellaneous Application No. 665/2021 in SMW(C) No. 3/2020, dated April 27, 2021].
Decision of the Hon’ble High Court
The Hon’ble High court observed that, the refund applications were made beyond the two years period and since the Hon’ble Supreme Court took Suo-motu cognizance of the situation arising out of the challenge faced by the country on account of COVID-19 Virus and resultant difficulties that could be faced by the litigants across the country and extended the time limit in filing petitions/ applications/ suits/ appeals/ all other proceedings, irrespective of the period of limitation prescribed under the general or special laws. Hence, the High Court allowed the writ petitions and set aside the orders rejecting the refund claims. Further, the Court has also placed reliance to paragraph 4(b) of the CGST and Customs Circular No. 157/13/2021-GST dated 20 July 2021.
Set aside the Impugned Order solely on the ground that reasons for rejection of refund have not been recorded in writing in accordance with Rule 92 of the CGST Rules.
