Refund rejection on limitation unsustainable where exclusion under Notification 13/2022 applies – Bombay High Court {Kavita Incorporation V/s Additional Commissioner CGST and CX – (2025) 33 Centax 221 (Bom}
Facts
- Assessee filed a refund claim (u/s 54 of CGST Act) within limitation.
- The refund application was rejected repeatedly (seven times) due to deficiencies.
- On the eighth re-filing, the department rejected it citing time-bar (beyond two years from date of export).
- The Appellate Authority also upheld rejection.
Issue
- Whether rejection of refund on limitation was sustainable, when the initial filing was within time but repeated re-filings occurred due to deficiencies, and when Notification No. 13/2022-CT dated 05.07.2022 excluded the period 01.03.2020–28.02.2022 from limitation.
Held
- The first refund application was within limitation.
- Rejections for deficiencies and subsequent re-filings cannot make the claim time-barred.
- Exclusion under Notification 13/2022 squarely applied.
- There was also non-compliance with principles of natural justice.
- Refund rejection order and appellate order set aside; refund claim to be reconsidered afresh.
