Case Law Details
Overseas Vs Union Of India And Ors (Delhi High Court)
Introduction: The Delhi High Court has provided significant relief to petitioners seeking refunds for Goods and Services Tax (GST). The court ruled that the period from March 1, 2020, to February 28, 2022, should be excluded from the limitation period for GST refund applications.
Analysis: This judgment came after the petitioner’s application for a refund was rejected by the Adjudicating Authority on the grounds of being time-barred. The rejection was sustained even after an appeal. The petitioner claimed technical glitches had prevented the timely filing of the refund claim. Given the exceptional circumstances surrounding the Covid-19 pandemic, the court deemed it necessary to exclude the said period while calculating the limitation period.
Following a notification from the Central Board of Indirect Taxes and Customs (CBIC) in July 2022, the court decided to consider this period exclusion valid, thus overturning the earlier decision of the Adjudicating Authority.
Conclusion: This ruling provides much-needed relief for businesses affected by the Covid-19 pandemic, as they now have an extended window to claim their GST refunds. The decision also underlines the flexibility of the judicial system in adjusting to exceptional circumstances and underscores the importance of ensuring that businesses can recover their due amounts even amidst challenging times.
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