2025 (6) TMI 1778 - HC - GST

Refund claim - time limitation - refund application filed beyond the period of two years as prescribed under section 54(1) of the Act as the relevant date would be date of communication of such appellate order - Applicability of Rule 113 of the Central/State Goods and Service Tax Rules 2017 - HELD THAT - Issue notice returnable on 2nd May 2025.

Summary

The Gujarat High Court, through Hon'ble Justice Bhargav D. Karia, addressed a petition concerning the applicability of Rule 113 of the Central/State Goods and Service Tax Rules, 2017 ("GST Rules") and section 54(1) of the GST Act regarding refund claims. The petitioners contended that the appellate order under section 107(1), which set aside the original order (Form MOV-09), was passed on 07.03.2022 but was not uploaded on the GST portal along with the mandatory summary in Form GST APL-04 until 03.06.2024, with the latter containing incorrect information under "status of the order." The petitioners filed a refund application on 04.06.2024 as per section 54(1) read with Explanation (d) to section 54, following the appellate order's direction.The respondent authorities rejected the refund application, relying on the communication date of 08.03.2022 to the petitioner's authorized representative, asserting the refund claim was barred by the two-year limitation under section 54(1). The petitioners argued that without the appellate order and Form GST APL-04 being uploaded as mandated by Rule 113, the limitation period could not commence, and thus no delay occurred in filing the refund claim.The Court issued notice with a returnable date of 2nd May 2025 and permitted direct service via email. The key legal issue centers on whether the limitation period under section 54(1) begins from the date of communication in person or from the date of uploading the appellate order and summary as required by Rule 113 of the GST Rules.