SC Covid limitation suspension orders apply to limitation for GST refund application

Saiher Supply Chain Consulting Pvt. Ltd. Vs Union of India  (Bombay High Court)

It is not in dispute that the first and second refund applications were rejected on the ground of certain deficiencies in those applications filed by the Respondent No.2. The third refund application, which was required to be filed within two years in accordance with the Circular No.20/16/04/18-GST dated 18th November 2019, under Section 54(1) of the Central Goods and Services Tax Act, 2017. The limitation period fell between 15^th March 2020 and 2^nd October 2021, which period was excluded by the Hon’ble Supreme Court in all such proceedings irrespective of the limitation prescribed under the general law or Special Law whether condonable or not till further Order/s to be passed by the Hon’ble Supreme Court in those proceedings.

The Hon’ble Supreme Court by Order dated 23^rd September 2021 in Misc. Application No. 665 of 2021 issued further directions that in computing the period of limitation in any Suit, Appeal, Application and or proceedings, the period from 15^th March 2020 till 2^nd October 2021 shall stand excluded. Consequently the balance period of limitation remaining as on 15^th March 2021, if any shall become available with effect from 3^rd October 2021.

In view of the said Order dated 23^rd March 2020 and the judgment dated 23^rd September 2021 passed by the Hon’ble Supreme Court, the period of limitation falling between 15^th March 2020 and 2^nd October 2021 stood excluded. In our view also, the period of limitation prescribed in the said Circular under Section 54(1) also stood excluded.

In our view, the Respondent No.2 is also bound by the said Order dated 23^rd March 2020 and the Order dated 23^rd September 2021 and is require to exclude the period of limitation falling during the said period. Since the period of limitation for filing the third refund application fell between the said period 15^th March 2020 and 2^nd October 2021, the said period stood excluded. The third refund application filed by the Petitioner thus was within the period of limitation prescribed under the said Circular dated 18^th November 2019 read with Section 54(1) of the Central Goods and Services Act, 2017. In our view, the impugned Order passed by the Respondent No.2 is contrary to the Order passed by the Hon’ble Supreme Court and thus deserves to be quashed and set-aside.

Please become a Premium member. If you are already a Premium member, login here to access the full content.