Pooja Engineering Co. Vs State of Maharashtra & Ors. (Bombay High Court)
Summary: The Bombay High Court in Pooja Engineering Co. Vs State of Maharashtra & Ors. addressed the rejection of a GST refund application by the Deputy Commissioner of State Tax. The refund application, covering 25 export transactions, was denied on the grounds of exceeding the two-year limitation period under Section 54(1) of the CGST Act, 2017. However, the petitioner pointed out that a subsequent notification issued by the Central Board of Indirect Taxes and Customs (CBIC) on July 5, 2022, clarified that the period from March 1, 2020, to February 28, 2022, should be excluded from the computation of the limitation period due to the impact of COVID-19. Applying this notification, the petitioner argued that the refund application was within the permissible time frame.
The state government’s representative acknowledged this notification and agreed that the rejection order could be set aside. Consequently, the High Court quashed the impugned order dated May 27, 2021, and restored the refund application for reconsideration by the Deputy Commissioner of State Tax. The court directed that the refund application be processed based on its merits, without rejecting it on limitation grounds. The case was disposed of without any cost implications, ensuring that the refund claim would be evaluated fairly under the applicable legal framework.
