GST Update

Desk of CA. Praveen Sharma – 854 Series (CAPS)

Bombay High Court in the case of Prithvi Exports

Bombay High Court allowed refund of unutilized ITC after accepting that the claim was filed within the limitation period extended during the COVID-19 pandemic.

The petitioner’s refund applications, filed between May 2020 and April 2021, were rejected as time-barred. The department argued that the Supreme Court’s order on limitation did not cover refund claims.

The Court relied on the precedent in Saiher Supply Chain Consulting Pvt. Ltd. v. Union of India, which held that the extension of limitation from 15 March 2020 to 2 October 2021 applies equally to refund applications.

Since the petitioner’s claim period fell within that window, the rejection solely on limitation grounds was held invalid. The orders were quashed, and the refund claims restored to the proper officer for reconsideration.

The officer was directed to treat the claim as within limitation and decide the refund on merits within three months. The Court also noted that the Saiher Supply Chain ruling was upheld by the Supreme Court in July 2022, and hence similar relief was granted while keeping the issue of interest open.

Link: CA. Praveen Sharma on Linkedin