Section 54 of the CGST Act, 2017 — Refund – Time period for filing reply to SCN --The petitioner challenged the order dated 15.05.2020 passed by the Adjudicating Authority rejecting the refund claim that had been set up by the petitioner and further challenged the order dated 14.12.2021 passed by the Appellate Authority affirming the order of the Adjudicating Authority. The court observed that the Adjudicating Authority rejected the refund claim without even dealing with the request of the petitioner seeking extension of time for purposes of filing a reply to the SCN. The extension of time had been granted by virtue of a Notification to cover all situations relating to the Covid-19 pandemic. The objection raised by counsel for the respondents that every refund application had to be disposed of within a period of 60 days failing which an interest liability would accrue is also without merit. Such situation also stands covered in terms of the extension Notification dated 03.04.2020. The authorities were obligated to grant extension in time to the petitioner for submission of a reply.

Held that:- The Hon’ble High Court allowed the petition and set aside the impugned orders. The matter is remanded back to the Adjudicating Authority and directed the petitioner a time period of three weeks for the purposes of filing a reply. In such event, the would then be considered on merits and a reasoned and speaking order would then be passed.