Order dated 29 July 2025

Parties:  Kavita Incorporation v. Addl. Commissioner CGST & CX, Appeals III, Mumbai & Anr.

Facts -

• The petitioner applied for a GST refund for July 2018–March 2019 in March 2020. The application was repeatedly returned for deficiencies and refiled eight times, last on 27 August 2021. Refund was rejected as time-barred under Section 54 of CGST Act; appeal also dismissed.
• Petitioner relied on the Supreme Court’s limitation extension orders and Notification 13/2022 (05 July 2022) excluding 01 March 2020–28 February 2022 from limitation computation.

Issue -

• Whether the refund application could be rejected as time-barred despite exclusion of the COVID period under Notification 13/2022 and SC directions?

Order -

• The division bench of the Hon’ble high court held that the reasoning of the Appellate Authority for not following the decision of the Hon’ble Supreme Court or this court is not quite appealing. In any event, the Notification dated 05 July 2022 clinches the issue, and based upon the same, the Petitioner’s Application could not be held to have been barred by limitation.
• Accordingly, the impugned order-in-appeal dated 22 June 2022, and the order dated 27 October 2021 are hereby set aside, and the 2nd Respondent is now directed to consider afresh and decide the Petitioner’s refund application on merits (and not on limitation), within 60 days from the date of uploading this order.