Case Law Details
Bharti Enterprises Vs Commissioner (Delhi High Court)
Introduction: In a significant legal development, the Delhi High Court has intervened in the case of Bharti Enterprises versus the Commissioner. The court’s directive pertains to the consideration of an Input Tax Credit (ITC) refund application in light of a Circular issued by the Central Board of Indirect Taxes and Customs (CBIC). This article delves into the details of the case, analyzing the implications of the court’s decision.
Detailed Analysis: The crux of the matter lies in the rejection of Bharti Enterprises’ application for an ITC refund, dated 27th July 2022, by Respondent No. 2. The rejection was primarily based on the contention that the application was filed belatedly. Despite a show cause notice issued to the petitioner, no response was furnished, leading to the dismissal of the application.
However, the scenario took a turn following the issuance of a Notification by the CBIC on 5th July 2022. This Notification, in alignment with the directives of the Supreme Court, extended the period of limitation, thereby affecting applications under Section 54 of the Central Goods and Services Tax Act, 2017. Consequently, Bharti Enterprises’ application for an ITC refund fell within the revised limitation period, as per the Circular.
The High Court, cognizant of these developments, found merit in Bharti Enterprises’ plea for reconsideration. Considering the retrospective effect of the Circular, the Court deemed it appropriate to remand the matter to Respondent No. 3 for a fresh consideration of the refund application.
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