Order date – 18 August 2022

Facts –

• The Petitioner, Xchanging Technology Services India Pvt. Ltd, is an exporter of services and avails input tax credit on input services used in providing the output export services against a letter of undertaking without payment of tax as per applicable provisions and procedures under the GST law.
• On 23.04.2020 Respondent issued a show cause notice for rejection of the refund. Petitioner responded in terms of a communication dated 28.04.2020 seeking extension for purposes of submitting a reply till 30.06.2020 citing the Covid-19 situation/pandemic.
• In such communication the petitioner placed reliance upon a CGST Notification No.35/2020-Central Tax issued by the Government on 03.04.2020 and as per which extension was envisaged even for purposes of filing a reply up to 30.06.2020.
• However, vide order dated 15.05.2020 the Adjudicating Authority rejected the refund claim without even dealing with the request of the petitioner seeking extension of time for purposes of filing a reply to the show cause notice.
• Aggrieved the petitioner filed an appeal.

Issue – 

• Whether the extension must have been granted to the petitioner according to the Notification No.35/2020-Central Tax due to Covid-19 situation?

Order – 

• The Court observed that even if the reply in the present case to the show cause notice had to be filed online, it goes without saying that certain documents/material had to be collected for the purpose of filing a comprehensive reply. 
• During the period of shut down, the same would not have been possible and as such it does not lie in the mouth of the respondents to take a stand that the extension Notification would apply only in such situations where the compliances had to be made only physically.
• The objection raised by counsel for the respondents that every refund application had to be disposed of within a period of 60 days failing which an interest liability would accrue is also without merit. Such situation also stands covered in terms of the extension Notification dated 03.04.2020 whereby the time frame for such purpose also stood extended beyond the period of 60 days and up to 30.06.2020.
• Therefore the impugned orders were aside and the petition was allowed.