M/S Shri Laxmi Industries vs. Union Of INDIA

Facts

M/s Shri Laxmi Industries (the petitioner) filed a refund application on December 12, 2020, for the period of July 2017 to March 2018. The Assistant Commissioner, Rajasthan Goods and Service Tax Department (respondent), rejected this application on December 30, 2020, citing that it was filed beyond the prescribed limitation period. The petitioner had initially challenged the vires of Section 54 of the Central Goods & Services Tax Act, 2017, but later withdrew this challenge. The relevant date for filing the refund application was March 2018, meaning the application should have been filed by March 2020.

Held

The Court held that the period from March 15, 2020, to February 28, 2022, is to be excluded for the computation of the limitation period for filing refund applications under Section 54 of the Central Goods & Services Tax Act, 2017. This decision was based on the Supreme Court's suo motu order in Suo Moto Writ Petition (Civil) No.3/2020 and the subsequent circular issued by the Central Board of Indirect Taxes and Customs dated July 5, 2022. The Court found that the petitioner's refund application, filed on December 12, 2020, was within the extended limitation period after excluding the aforementioned period. Consequently, the impugned order rejecting the refund application was set aside. The matter was remitted back to the respondents for a fresh decision on the refund application in accordance with the law. The Court also requested the respondents to endeavor to decide the application as early as possible, considering the refund claim pertains to the year 2017-2018.

Key Issues

1. Whether the period from March 15, 2020, to February 28, 2022, should be excluded for the purpose of computing the limitation period for filing a refund application under Section 54 of the Central Goods & Services Tax Act, 2017, in light of the Supreme Court's suo motu order and subsequent circulars. Petitioner's Argument: The petitioner contended that the Supreme Court's order in Suo Moto Writ Petition (Civil) No.3/2020, which excluded the period from March 15, 2020, to February 28, 2022, for limitation purposes, should be applied. They also relied on the Central Board of Indirect Taxes and Customs circular dated July 5, 2022, which explicitly excluded this period for refund applications under Section 54. Therefore, their application, filed on December 12, 2020, was within the extended limitation period. Revenue's Argument: The judgment does not record any specific arguments made by the respondents.