Delhi HC Instructs to Apply GST Refund Application Within 7 Days, Earlier Rejected Due to Failure U/S 54

The Delhi High Court was directed to apply for a refund mandated under section 54 of the Central Goods and Service Tax ( CGST ) Act, 2017 for a refund of GST paid. The court removes the period between 19.01.2024 and the date of judgment for limitation.

The applicant, Pedersen Consultants India Pvt Ltd, asks for direction from the respondents to grant the benefit of the GST Input Tax Credit that was paid by the applicant on the identical invoices for the period 2019-2020, on which, Respondent No. 3 has also paid the tax.

Petitioner Counsel proposed that the applicant had been forced into depositing the tax on the said invoices as Respondent No. 3 had not filed returns within time. Later, it transpired that Respondent No. 3 had filed the returns and claimed an ITC for the identical invoices.

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Therefore, a double payment has been made to the department. She proposes that the applicant aims for a refund of the amount that the Petitioner was made to deposit on the stated invoices.

Respondent’s counsel furnished that the claim of the applicant was not regarded as the applicant had losses to file a pertinent refund application as directed under Section 54 of the CGST Act, 2017.

As the objection of non-filing of a proper application has been raised, within one week, the applicant will file an appropriate application with the related Authority claiming a refund.

Upon Notification No. 13/2022 she relied on the date 05.07.2022 to claim that the duration between 01.03.2020 to 28.02.2023 is to be removed for calculation of the period of limitation for filing a GST refund application under Section 54 or 55 of the Act. She proposed that the period between the filing of the subject petition i.e. 19.01.2024 till today is also removed.

A division bench of Justice Sanjeev Sachdeva and Justice Ravinder Dudeja disposed of the plea allowing the applicant to file a proper application as mandated under Section 54 of the Act claiming a refund. The period between 19.01.2024 and today will not be included for limitation.

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The claim of the applicant that the applicant is covered by Notification No. 13/22 will be regarded via the Proper Officer by law while entertaining the application for refund filed by the applicant. Ms. Sangita Gulati appeared for the applicant. For the Respondent Mr. Anish Roy, Senior Standing Counsel, CBIC with Mr.Dileep Singh Rajpurohit and Mr. Mahesh K. Chaudhary appeared.

Case Title	Pedersen Consultants India Pvt Ltd Vs Union of India & Ors
Appeal Number	W.p.(c) 1039/2024
Date	19.03.2024
Appellant by	Ms. Sangita Gulati, Advocate
Respondent by	Mr. Anish Roy, Senior Standing Counsel, CBIC with Mr.Dileep Singh Rajpurohit, Advocate for R-1. Mr. Mahesh K. Chaudhary, Advocate for R-3.
Delhi High Court	Read Order