Section 54 of the CGST Act, 2017 – Refund —Limitation period -- The petitioner challenged an order dated 05.10.2021, whereby the application of the petitioner for refund was rejected as barred by limitation. The petitioner filed refund application on 15.9.2021, for the tax period July, 2017 to March, 2018 and April, 2018 to March, 2019. Thereafter, a notice for rejection of the application for refund was issued on 25.09.2021 and the respondent No.1 passed an order on 05.10.2021 rejecting the application for refund, on the ground of limitation. The counsel for the petitioner submitted that a reading of Clause 2 to the Explanation to Section 54 would show that the ‘relevant date’ is prescribed only for goods exported out of India, but there is no provision determining the ‘relevant date’ in respect of the supplies to SEZ units, which are considered as zero-rated sales under Section 16 of the IGST Act. CBIC Notification dated 05.07.2022, clearly postulates that in respect of period 1st March, 2020 to 28th February, 2022, the computation of period of limitation, for filing refund application under Section 54 or Section 55  shall stand excluded. The court observed that it cannot be said that the application for refund was made beyond the period of limitation.

Held that:- The Hon’ble High Court set aside the impugned order and remanded the matter back to the respondent No.1, for fresh consideration in accordance with law.