Section 54 of the CGST Act, 2017  – Refund – Limitation Period - The petitioner sought declaration that, Rule 90(3) is ultra vires the Constitution of India. The Petitioner also sought a writ of certiorari for quashing and setting aside the refund rejection Order dated 26th November 2020. The application for refund was rejected by the Respondent on 5th September 2020 on the ground that there were certain deficiencies in the said application. The Petitioner thereafter filed second application on 8th September 2020. The Respondent rejected the said second refund application by pointing out deficiency by Order dated 23rd September 2020. The Petitioner thereafter filed third refund application on 30th September 2020, which was rejected by the Respondent by Order dated 26th November 2020 on the ground that the said application was time barred. The counsel relied on the decision of the Hon’ble Supreme Court on 23rd March 2020 regarding Extension of Limitation. The court observed that the third refund application, which was required to be filed within two years under Section 54(1) of the Act. The limitation period fell between 15th March 2020 and 2nd October 2021, which period was excluded by the Hon’ble Supreme Court. The Respondent is also bound by the said Order dated 23rd March 2020 and the Order dated 23rd September 2021 and is require to exclude the period of limitation falling during the said period.

Held that:- The Hon’ble High Court quashed the impugned Order dated 26th November 2020 and restored the refund application dated 30th September 2020. Further directed the Respondent to consider the said third refund application on its own merits and in accordance with law.