Section 54 of the CGST Act, 2017 – Refund —- The Petitioner challenged the order dated 21.08.2020 and prayed for allowing the petitioner's refund claim filed on 07.07.2020. The petitioner counsel submitted that CBIC has issued a Circular F.No.CBIC-20001/8/2021-GST dated September 25, 2021, clarifying that refund applications must be reckoned before the expiry of two years from the date payment of tax under the correct head. The correct date of payment of tax is 30.01.2020 and application seeking refund has been filed on July 7, 2020. The court observed that the limitation shall be two years from the date of payment of tax and tax has been paid on January 30, 2020. Thus, the refund application is in time.

Held that:- The Hon’ble High Court allowed the writ petition and quashed the Order dated August 21, 2020. The Respondent No.1 shall consider petitioner's application and refund the amount within an outer limit of three months.