Order Date – 26 September 2023

Parties: Mahalaxmi Exports through its proprietor Mr. Sushil Kohli Vs Commissioner of Delhi Goods and Services Tax and Others

Facts –

• The Petitioner, Mahalaxmi Exports through its proprietor Mr. Sushil Kohli, had filed an application on 28.11.2021, seeking refund of the unutilised ITC for the period, from 1st April, 2019 to 30th September, 2019.
• Though the application was acknowledged but on the same date the revenue issued a show cause notice proposing to reject the petitioner’s application as being barred by time. The petitioner responded to SCN and contended that the delay was for bona fide and genuine reasons due to the disruption caused as a result of the outbreak of COVID-19.
• However, the petitioner’s refund application was rejected by the impugned order dated 28.01.2022. The appeal filed against the impugned order also dismissed on the ground that it was barred by limitation.

Issue –

• Whether the petitioner is entitled to refund?

Order –

• The Divisional Bench of Hon’ble High Court observed that the notification no. 13/2022-Central Tax dated 05.07.2022 expressly provides that the period commencing from the 1st day of March, 2020 to 28th February, 2022, would be excluded, inter alia, for the purposes of filing the refund application under Section 54 or Section 55 of the CGST Act.
• Undisputedly, the petitioner’s application for refund was within the time limit as prescribed under Section 54(1) of the CGST Act, if the said period is excluded. The benefit of the said circular has not been provided to the petitioner, as the same was issued after the petitioner’s refund application was rejected.
• Hence the impugned orders are set aside and the respondents are directed to process the petitioner’s refund application along with the applicable interest.