Facts of the Case

The petitioner, Star Publishers Distributors, filed a refund application of Input Tax Credit (ITC) amounting to ₹13,71,484 under GST. The claim was divided into two periods:

  • ₹8,75,068 (01.06.2018 – 31.03.2019)
  • ₹4,96,416 (01.04.2019 – 31.03.2020)

While the second period refund was allowed, the first was rejected on the ground of limitation under Section 54(1) of the CGST Act.

The petitioner filed an appeal. The Appellate Authority accepted that limitation should be computed after excluding the COVID period as per Notification No. 13/2022. However, the appeal was still rejected citing lack of documentary evidence regarding exports.

Issues Involved

  1. Whether refund can be denied on grounds not raised by the Adjudicating Authority.
  2. Whether the limitation under Section 54(1) was correctly applied considering the COVID exclusion notification.
  3. Whether sufficient documentary evidence was provided to establish export and relevant date.

Petitioner’s Arguments

  • The refund application was not time-barred in view of Notification No. 13/2022 excluding the COVID period.
  • All relevant documents, including invoices, shipping bills, and remittance details, were submitted.
  • The Appellate Authority wrongly introduced a new ground (lack of documents) which was never raised earlier.

Respondent’s Arguments

  • The refund was not admissible due to absence of documentary proof regarding exports.
  • The relevant date for limitation could not be determined without proper documentation.

Court’s Findings / Order

The Court held:

  • The Appellate Authority’s decision was unsustainable.
  • No objection regarding documents was raised by the Adjudicating Authority.
  • The petitioner had submitted a tabulated statement containing invoice dates, shipping bill dates, and remittance details.
  • There was no ambiguity in determining the relevant date under Section 54.

Order:

  • The petition was allowed.
  • The respondents were directed to process the refund along with applicable interest within two weeks. 

Important Clarifications by the Court

  • Authorities cannot reject claims on new grounds at the appellate stage if not raised earlier.
  • Documentary evidence already submitted cannot be ignored without dispute.
  • The “relevant date” under Section 54 must be determined based on export details such as shipping bills.

Sections Involved

  • Section 54(1), CGST Act, 2017 – Refund claim time limit
  • Explanation (2) to Section 54 – Definition of “Relevant Date”
  • Notification No. 13/2022 – Central Tax (05.07.2022) – Exclusion of COVID period

Link to download the order - https://delhihighcourt.nic.in/app/showFileJudgment/VIB11102023CW129002023_130355.pdf

Disclaimer

This content is shared strictly for general information and knowledge purposes only. Readers should independently verify the information from reliable sources. It is not intended to provide legal, professional, or advisory guidance. The author and the organisation disclaim all liability arising from the use of this content. The material has been prepared with the assistance of AI tools.