Order Date – 02 May 2025

Parties: M/s Louis Dreyfus Company India Pvt. Ltd. Vs Union of India & Ors.

Facts –

• The Petitioner, M/s Louis Dreyfus Company India Pvt. Ltd. , filed refund claims under Section 54(3)(ii) of the CGST Act, 2017 for accumulated Input Tax Credit due to an inverted duty structure, for the period from July 2019 to February 2020.
• Though the refund application was filed within the prescribed limitation period as per Notification No. 13/2022-Central Tax, the refund was rejected by Respondent No. 2 through an order dated 05.01.2023, relying on Circular No. 181/13/2022-GST dated 10.11.2022, which interpreted Notification No. 9/2022-Central Tax (Rate) to deny refund claims filed after 18.07.2022, even for periods predating that date.

Issue –

• Whether refund claims for periods prior to 18.07.2022 can be rejected merely because the application was filed after 18.07.2022, based on the impugned circular and notification?

Order –

• The Hon’ble High Court observed that the Petitioner had filed his Refund Application on 07.011.2022 which was well within the period of limitation under Section 54(1) of the Act. In such view of the matter, following the decision of Patanjali Foods since the Refund Applications in question were filed within the period of limitation, the same could not be rejected, by placing reliance on Circular No.181/13/2022- GST dated 10.11.2022.
• Following the decision of this Court in case of Patanjali Foods, the aforesaid reasoning of the impugned rejection Order is clearly erroneous and hence, is hereby quashed and set aside.