M/S. Dolphin Inks PVT. LTD. vs. Joint Commissioner (Appeals) CGST And Central Excise And Anr

Held

The Court held that the refund application was filed within the period of limitation. The Court referred to its earlier decision in Saiher Supply Chain Consulting Pvt. Ltd. V/s. Union of India and Anr., which held that the period from 15th March 2020 to 2nd October 2021, excluded by the Hon'ble Supreme Court for computing limitation periods, must also be applied to the limitation prescribed for filing refund applications under Section 54(1) of the CGST Act, 2017. Consequently, the Assistant Commissioner and the Joint Commissioner (Appeals) erred in rejecting the refund application solely on the ground of limitation. The impugned order dated 28th October 2021 was quashed and set aside. The Court directed the Assistant Commissioner, CGST and Central Excise, Nashik-II Division to process the refund application within four weeks, provided there were no other defects. If defects existed, they were to be identified and communicated to the petitioner within two weeks for rectification. The refund application was to be decided on its merits, with limitation not being an issue. The Court clarified that no observations were made on the merits of the refund claim itself.

Facts

The petitioner, M/s. Dolphin Inks Pvt. Ltd., filed three writ petitions challenging an order dated 28th October 2021 passed by the Joint Commissioner (Appeals). This order rejected the petitioner's appeal against an order in original passed by the Assistant Commissioner, CGST and Central Excise, Nashik-II Division. The sole ground for rejecting the refund application, filed on 28th August 2021 for the month of June 2019, was that it was allegedly filed beyond the two-year period of limitation prescribed under Section 54(1) of the Central Goods and Services Tax Act, 2017. The petitioner contended that the limitation period should have been extended due to orders passed by the Hon'ble Supreme Court.

Key Issues

1. Whether the refund application filed on 28th August 2021 for the month of June 2019 was filed within the period of limitation prescribed under Section 54(1) of the Central Goods and Services Tax Act, 2017, considering the exclusion of the period from 15th March 2020 to 2nd October 2021 as directed by the Hon'ble Supreme Court? Petitioner's contentions: The petitioner argued that the refund application was filed within the period of limitation because the Hon'ble Supreme Court, in its orders dated 23rd March 2020 and 23rd September 2021, directed the exclusion of the period from 15th March 2020 to 2nd October 2021 for computing limitation periods in all proceedings. They relied on the High Court's own decision in Saiher Supply Chain Consulting Pvt. Ltd. V/s. Union of India and Anr. Revenue's contentions: The judgment records no specific arguments from the respondents.