Order dated 18 July 2025 
Parties:  M/S. KUSH PROTEINS PVT. LTD. & ANR.  vs. Union of India & Ors.

Facts -

• The petitioner, engaged in manufacture and sale of edible oils, filed refund claims for unutilized ITC under inverted duty structure for periods prior to 18.07.2022. 
• The department denied refund relying on Notification No. 9/2022 and Circular 181/13/2022-GST, which restricted refund eligibility from 18.07.2022.

Issue -

• Whether refund of ITC for periods prior to 18.07.2022 can be denied based on Notification No. 9/2022 and Circular No. 181/13/2022 GST issued later?

Order - 

• The division bench of the Hon’ble high court held that the circular itself states that the notification dated 13.7.2022 has prospective effect. Even otherwise, the restriction contained in notification dated 13.7.2022 was introduced for the first time on such date and by expressly stating that it would apply prospectively and that too from 18.7.2022. 
• Section 54(1) of the GST act clearly gives a time limit of 2 years for filing of the refund application and such time limit was extended by notification no. 13/2022 because of the Covid-19 pandemic. The application filed by the Petitioner was within the statutory period of limitation and the same was pertaining to period prior to 13.7.2022.
• In view of the above settled proposition of law, the impugned order dated 31.3.2023 in refund Application as well as the impugned order dated 29.2.2024 in Order in Appeal are illegal and unsustainable and the same deserve to be quashed and set-aside.