Bombay HC sets aside rejection of refund claims by GST authorities

Joseph B. Hash

The Bombay Higher Courtroom has quashed an order by the GST authorities that had turned down the refund claim of an assessee because it was submitted after two a long time, a time restrict set by the guidelines. This was carried out since the authorities have not taken into cognizance the previously Supreme Courtroom verdict that excluded the time period from March 15, 2020 and October 02, 2021 from the time restrict thanks to Covid.

However, the large courtroom did not go into the validity of the round and the dilemma of hanging it down.

The petitioner anxious submitted the very first refund application for the time period July 2018 to September 2018 on August 21, 2020 on-line on the GST portal. The mentioned application, however, was turned down by the assistant commissioner of CentralGST (CGST) in Mumbai on September 05, 2020 on the floor that there were being certain deficiencies in the mentioned application.

As these, the petitioner submitted the 2nd refund application on September 08, 2020, but this was also turned down by the assistant commissioner, pointing out deficiency.

Thereafter, the petitioner submitted a third refund application on September 30, 2020, but that was turned down by the official talked about previously mentioned on the floor that the application had surpassed the time of two a long time, set by GST guidelines presented in a round issued by the Central Board of Indirect Taxes and Customs.

Aggrieved petitioner went to the Bombay large courtroom, trying to find to declare a mentioned rule of restricting the refund within two a long time as extremely vires the Structure.

The petitioner also sought quashing and setting aside the rejection order and path to restore the third refund application of the petitioner.

HC observed that it is not in dispute that the very first and 2nd refund applications were being turned down on the floor of certain deficiencies in those applications.

The third refund application was required to be submitted within two a long time in accordance with the GST guidelines.

However, in this petitioner’s case, these limitation time period fell involving March 15, 2020 and October 02, 2021, a time period which was excluded by the Supreme Courtroom in all proceedings irrespective of the limitation recommended beneath the normal law or particular law.

Previously, the apex courtroom in a suo motu writ petition had issued directions that in computing the time period of limitation in any match, appeal, application and or proceedings, the time period from March 15, 2020 till October 2, 2021 will stand excluded thanks to Covid waves.

As these, the large courtroom dominated that the assistant commissioner, CGST, is required to exclude the time period of limitation slipping during the mentioned time period.

It dominated that the third refund application submitted by the petitioner was within the time period of limitation recommended.

Owing to this, the large courtroom found the order by the CGST official to be contrary to the order passed by the Supreme Courtroom.

However, the large courtroom did not go into the validity of the round which prescribes the time restrict for refund promises, indicating the very same can be regarded as in the correct case.

Sandeep Sehgal, associate tax at AKM Global, mentioned,”The GST section, without the need of having cognizance of the relaxations accessible therein for the limits, turned down the refund application. Consequently, the large courtroom has rightly dominated in favour of the taxpayer.”

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