Order Date – 10 May 2023

Parties: M/s Gajraj Vahan Private Limited Vs The State of Jharkhand, The Commissioner of State Taxes, Jharkhand, The Joint Commissioner of State Taxes, (Admn.) Hazaribagh, The Deputy Commissioner of State Taxes, State Goods and Service Tax

Facts – 

• The Petitioner, M/s Gajraj Vahan Private Limited, made payment in a wrong head and filed a refund application.
• The refund was rejected on the ground that being barred by the law of limitation as prescribed under Section 54 of Central Goods and Services Tax, act, 2017.

Issue – 

• Whether refund rejected on the ground barred by the law of limitation is in order?

Order – 

• The Divisional Bench of Hon’ble High Court observed that Circular bearing No. 162/18/2021-GST dated 25.9.2021 was issued by the CBIC on the subject/clarification in respect to refund of tax specified in Section 77(i) of the CGST Act and Section 19(i) of the IGST Act. Earlier, vide Notification No. 35/2001-Central Tax dated 24.9.2021, Sub-Rule (1A) of Rule 89 of CGST Rules 2017 has been inserted.
• Thus, the relevant CBIC had extended a benevolent provision for extension of limitation of refund in case of wrong deposit.
• Hence the writ petition is disposed of by quashing Annexure-7 to the writ petition. Further liberty is given to the petitioner to file an application within a period of thirty days hence for refund of excess CGST paid to the respondent, which shall be considered in light of the latest circular within a period of thirty days, thereafter.