Order Date: 24 August 2022

Facts-

• The Petitioner, Gandhar oil refinery India Limited, is engaged in the business of trading Coal. The Petitioner claimed that he is entitled to a refund of tax paid on such supplies, in terms of Section 54 of the CGST Act, 2017 read with Rule 89 of the CGST Rules, 2017.
• The refund application filed by the Petitioner dated September 22, 2021, was for the tax period of May 2018 to May 2019. Further, a show cause notice dated November 12, 2021 was issued to the Petitioner by the assessing authority on the ground that the application made by the Petitioner, is barred by limitation.
• Since the refund application was filed beyond the period of two years prescribed under Section 54(14) of the CGST Act, the Respondent passed an order dated June 16, 2022 rejecting the refund application of the Petitioner. 
• Therefore, the Petitioner filed the present writ petition.

Issue-

• Whether the refund application filed by the Petitioner is barred by limitation according to the recent notification [Notification no. 13/2022–Central Tax dated July 5, 2022]?

Order-

• The Division Bench of Hon’ble High Court observed that the recent Notification dated July 5, 2022, , postulates that the period from 1st March 2020 to 28th February 2022, for computation of the period of limitation for filing refund application under Section 54 or Section 55 of the CGST Act stands.
• The Court further observed that explanation of Section 54 clause 2 of the CGST Act, shows that the ‘relevant date’ is prescribed only for goods exported out of India, but, there is no provision determining the ‘relevant date’ in respect of the supplies to SEZ units.
•  Therefore, the Court mentioned that it cannot be said that the application for a refund was made beyond the period of limitation. 
• The Court Disposed of the writ petition and remanded back the matter to the Assessing authority for fresh consideration in accordance with law.