Limitation Period for Filing Refund of Unutilized ITC on Export of Goods to Be Computed From Shipping Date | HC

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Refund of Unutilized ITC

Case Details: Nitrex Chemicals India Ltd vs. Assistant Commissioner goods and Service Tax Division VIII Valsad - [2025] 171 taxmann.com 744 (Gujarat)

Judiciary and Counsel Details

  • Bhargav D. Karia & D.N. Ray, JJ.
  • AR Chauhan & Punit B. Juneja for the Petitioner.
  • Utkarsh R. Sharma for the Respondent.

Facts of the Case

The assessee, an exporter, exported goods between July 2017 and March 2018 and subsequently filed a refund application under Section 54(1) of the Central Goods and Services Tax Act, 2017 (CGST Act), seeking a refund of the IGST paid on such exports. The Revenue rejected the refund claim for the period prior to June 2018, stating that it was filed beyond the prescribed two-year limitation period. Aggrieved by the rejection, the assessee filed a writ petition before the Gujarat High Court, contending that the relevant date for computing the limitation period should be the date of filing returns rather than the date of shipping. The assessee further argued that the delay was attributable to COVID-19-related disruptions and sought relief on these grounds.

High Court Held

The Hon’ble Gujarat High Court held that, as per Section 54(1) read with Explanation 2 of the CGST Act, 2017, the relevant date for computing the two-year limitation period is the date when the goods are loaded for shipping and leave India. The Court emphasized that the limitation period is mandatory and cannot be extended beyond two years, except where explicitly provided by law. As the petitioner has failed to file the refund claim within the prescribed period of two years from the relevant date, the respondent authority has rightly rejected such refund claim as being time barred.

List of Cases Reviewed

  • IOC Ltd. v. UOI (SCA No. 12074/2011) – (para 19) followed, Mafatlal Industries Ltd. v. Union of India, (1997) 5 SCC 536 – (para 19) followed
  • M/s. Proxima Steel Forge Pvt Ltd. v. Union of India (CWP-21975-2024) – (para 14) distinguished
  • M/s. Lenovo (India) Pvt. Ltd. v. Joint Commissioner of GST (W.P. Nos. 23604 and 23605 of 2022) – (para 14) distinguished

List of Cases Referred to

  • Mafatlal Industries Ltv. v. Union of India (1997) 5 SCC 536 (para 20).

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