Hon’ble Madras High Court delivered a judgment recently, on 11.01.2024, in the matter of Acrologic Business Solutions v. Assistant Commissioner of Central Taxes, 2024 (1) TMI 623- Madras High Court, therein holding that period from 01.03.2020 to 28.02.2022 is required to be excluded for computation of period of limitation for filing refund application under Section 54 of the CGST Act.
The facts of the case were that Appellate Authority had inter-alia disallowed refund claim for the period from April 2018 to August 2018 on the ground that the refund claim for the said period was time barred, having been filed on 04.09.2020. It was the Petitioner’s case that due to the onset of COVID-19 they were unable to function properly. Petitioner further placed reliance on the Notification No. 13/2022-C.T., by virtue of which, limitation period from 01.03.2020 to 28.02.2022 was required to be excluded.
The Hon’ble High Court, while agreeing with Petitioner’s contention, held as follows:
1. The Notification No. 13/2022-CT clearly specifies that period running from 01.03.2020 to 28.02.2022 is required to be excluded for computation of the period for limitation for filing a refund application under Section 54 of the CGST Act.
2. The relevant date is the date of receipt of payment in convertible foreign exchange, as per Explanation (2) to sub-section (14) of Section 54. Even as regards FIRCs issued in April 2018, if the benefit of the above notification is extended to the petitioner, the refund application dated 04.09.2020 would be within the two year period, which is to be computed from the relevant date, as per sub-section (1) of Section 54 of the CGST Act.
