Bombay High Court : Extended period of limitation as directed by Supreme Court is applicable for filing of refund applications

• Saiher Supply Chain Consulting Pvt Ltd. (‘the Petitioner’) filed two refund applications for the period July 2018 to September 2018 and the same were rejected on account of the deficiencies
• Subsequently, the Petitioner filed a third refund application for the same period (i.e., July 2018 to September 2018) on 30 September 2020
• The  Department  rejected the third refund application on 26 November 2020 on the ground that the application was time barred due to 2 year limit prescribed under Section 54(1) of the Central Goods and Service Tax Act, 2017 (‘CGST Act’) read with the Circular No.20/16/04/18-GST dated 19 November 2019 (‘the Circular’)
• The Petitioner filed a Writ Petition before the Bombay High Court inter-alia seeking restoration of the third refund application and declaring Rule 90(3) of Central Goods and Service Tax Rules, 2017 (‘CGST Rules 2017’) is ultra vires of the Constitution of India

•  Whether limitation extension order passed by the Hon’ble Supreme Court in Re Cognizance for Extension of Limitation in Suo Motu Writ Petition (Civil) No. 3 of 2020  (‘Order dated 23 March 2020’)  is applicable in respect of the time limit prescribed for the refund applications under CGST Act, 2017?

• Limitation period fell between 15 March 2020 and 02 October 2021 was excluded by the Hon’ble Supreme Court in all such proceedings irrespective of the limitation prescribed under the general law or Special Law whether condonable or not till further Order/s to be passed by the Hon’ble Supreme Court in those proceeding
• Since the limitation period of this third refund application was falling between 15 March 2020 and 02 October 2021 accordingly such period should be excluded for computing the limitation period for filing the refund application
• The Supreme Court had vide Order dated 23 March 2020  ordered that the period of limitation would not apply with effect from 15 March 2020 and this was extended by the Order dated 23 September 2021 till 02 October 2021 with the balance period of limitation coming into effect from 03 October 2021

Accordingly, the third refund application filed by the Petitioner was restored as the same was within the period of limitation in light of the above mentioned Supreme Court directions

Separately, the Bombay High Court did not discuss with respect to the validity of the Circular dated 18 November 2019 and Rule 90(3) of the CGST Rules 2017

*Writ Petition No.1275 of 2021 dated 12 January 2022 (Bombay High Court)