The Allahabad High Court has set aside the orders dated 19.8.2021 and 13.9.2021, whereby, the petitioner’s refund applications dated 31.3.2021 and 21.6.2021 (for the period April, 2018 to March, 2019) and refund application dated 30.6.2021 and 24.7.2021 (for the tax period April, 2019 to June, 2019) have been rejected.
Thus, the refund claimed Rs 18,60,677/- and Rs 5,04,459/- has been declined for the reason of delay.
The Division Bench of Justice Saumitra Dayal Singh and Justice Ram Manohar Narayan Mishra passed this order while hearing a petition filed by M/S Zest Inc.
The Court observed that,
Having heard counsel for the parties and having perused the record, undoubtedly the claim for refund should have been made by the petitioner within two years from the relevant date i.e date of export.
The export having been made during the years 2018 and 2019, the refund applications should have been filed by 2020 and 2021. At the same time, it cannot be lost sight that owing to spread of Pandemic Covid-19, first upon orders passed by the Supreme Court, in Public Interest Litigation and then in terms of the Government Notification No.13 of 2022, dated 5th July, 2022, the limitation for the duration 15.2.2020 to 28.2.2022 remained suspended.
Seen in that light, the applications for refund were filed by the petitioner not later than 21.6.2021 (for the tax period April, 2018 to March, 2019) and not later than 24.7.2021 (for the tax period April, 2019 to June, 2019).
Any doubt that may have existed in that regard, was resolved by a Coordinate Bench of the Court in Gamma Gaana Ltd vs Union of India, 2022 (60) G.S.T.L 224 (All.)
That being the clear position in law, the orders dated 19.8.2021 and 13.9.2021 in so far as they seek to reject the claim for refund of Rs 18,60,667/- (for the period April, 2018 to March, 2019) and Rs 5,04,459/- (for the period April, 2019 to June, 2019), for the solitary reason of delay, cannot be sustained, the Court said.
Amit Mahajan, counsel for the revenue stated that the dates are not in dispute. Therefore, no useful purpose may be served in calling for a counter in such proceeding.
Accordingly, the Court set aside the orders dated 19.8.2021 and 13.9.2021 and the matter remitted to respondent No 3 i.e Assistant Commissioner, CGST, Division- (IV) to proceed to pass fresh orders on the refund applications made by the petitioner, without raising any objection as to delay. Such exercise may be completed as expeditiously as possible, preferably, within a period of three months, after giving opportunity of hearing to the petitioner, if any part of the claim is proposed to be rejected”, the Court ordered.