M/S Kbs Motors Private Limited Vs Union of India and Others — Punjab & Haryana HC (2026) — LawSathi Research

M/S Kbs Motors Private Limited Vs Union of India and Others — Punjab & Haryana HC (2026) — LawSathi Research

What the court decided

AI extract

Outcome

Impugned order(s) dated 01.07.2022 rejecting the refund application quashed; respondent No.3 (Deputy Commissioner, Central GST Division, Ambala City) directed to re-consider the petitioner's refund claim in light of the notification dated 05.07.2022 expeditiously; pending miscellaneous applications disposed of.

Issue for consideration

Whether the petitioner's application for refund of tax paid, filed in May 2021 after expiry of the two-year limitation period, could be rejected on the ground of limitation in view of the Central Board of Indirect Taxes and Customs notification dated 05.07.2022 excluding the period 01.03.2020 to 28.02.2022 from computation of limitation under Sections 54 and 55 of the Act.

Court's answer

Given the issuance of the CBIC notification dated 05.07.2022, whose applicability to the facts of the case the revenue did not dispute, the orders rejecting the petitioner's claim for refund cannot be sustained.

Ratio / Principle

The writ petition succeeds and is allowed; the impugned order(s) rejecting the refund claim are quashed.

Key takeaways

Respondent No.3, the Deputy Commissioner, Central Goods and Services Tax Division, Ambala City, Ambala, Haryana, is directed to re-consider the petitioner's claim for refund in light of the notification dated 05.07.2022 expeditiously.ratio¶33
The application under Section 151 CPC seeking preponement is allowed and the hearing date of 10.08.2026 fixed in the main writ petition is preponed to 02.07.2026.ratio¶15

Detailed headnote1 paragraphs

Punjab and Haryana High Court (Ashwani Kumar Mishra, A.C.J., oral judgment; Rohit Kapoor, J.) allowed CWP-997-2023 filed by M/s KBS Motors Private Limited challenging rejection (order dated 01.07.2022) of its application for refund of tax paid on the ground of limitation. The Court noted that the statutory limitation period is two years and the refund application was filed in May 2021, but placed reliance on a Central Board of Indirect Taxes and Customs notification dated 05.07.2022 excluding the period from 01.03.2020 to 28.02.2022 from computation of limitation in terms of Sections 54 and 55 of the Act. Learned counsel for the revenue did not dispute issuance or applicability of the notification. Holding the rejection orders unsustainable, the Court quashed them and directed respondent No.3, the Deputy Commissioner, Central GST Division, Ambala City, to re-consider the refund claim in light of the notification expeditiously. CM-9473-CWP-2026 under Section 151 CPC seeking preponement of the hearing fixed for 10.08.2026 was allowed and the main case heard on 02.07.2026 with consent of parties.

102 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

CM-9473-CWP-2026 in/and CWP-997-2023 (O&M) Date of Decision:02.07.2026

M/S KBS MOTORS PRIVATE LIMITED …..PETITIONER(S)

VERSUS

UNION OF INDIA AND OTHERS ….RESPONDENT(S)

CORAM:HON'BLE THE ACTING CHIEF JUSTICE HON’BLE MR. JUSTICE ROHIT KAPOOR

Present: Mr. Tajender K. Joshi, Advocate for the applicant-petitioner.

Mr. Rishabh Kapoor, Senior Standing Counsel for the respondent.

ASHWANI KUMAR MISHRA, A.C.J. (Oral)

CM-9473-CWP-2026 (preponement)

This application under Section 151 CPC has been filed on

behalf of the applicant-petitioner seeking preponement of the date of hearing fixed in the main writ petition.

For the reasons mentioned in the application, the same is allowed and the date already fixed in the main writ petition i.e. , 10.08.2026 is hereby preponed for today.

Main Case (O&M)

With the consent of the parties, main writ petition is taken on board for hearing today itself.

This petition assails the order passed by the respondents dated 01.07.2022 (Annexure P-1), whereby the petitioner's application for refund of the amount of tax paid has been rejected on the ground of

RAHUL JOSHI 2026.07.06 11:38 I attest to the accuracy and integrity of this document Punjab & Haryana High Court, CHD

CWP-997-2023 (O&M)

2

limitation.

Under the statute, the period of limitation is stated to be two years. It is undisputed that the application for refund was made after the expiry of such period.

In the writ petition, the petitioner has placed on record a notification issued by the Central Board of Indirect Taxes and Customs dated 05.07.2022, whereby the period between the 1st day of March, 2020 to the 28th day of February, 2022 is to be excluded from computation for the purposes of limitation in terms of Sections 54 and 55 of the Act.

It is, therefore, argued on behalf of the petitioner that since the notification squarely applies to the present case, the application for refund filed in the month of May, 2021 cannot be rejected on the ground of limitation. A prayer is accordingly made to direct the respondents to reconsider the matter in light of the notification dated 05.07.2022.

Learned counsel representing the revenue does not dispute the issuance of the notification dated 05.07.2022 or its applicability to the facts of the instant case.

In that view of the matter, we find that the orders passed by the respondents rejecting the petitioner's claim for refund cannot be sustained.

Consequently, the writ petition succeeds and is allowed . The impugned order(s) are hereby quashed.

A direction is issued to respondent No.3, the Deputy

RAHUL JOSHI 2026.07.06 11:38 I attest to the accuracy and integrity of this document Punjab & Haryana High Court, CHD

CWP-997-2023 (O&M)

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Commissioner, Central Goods and Services Tax Division, Ambala City, Ambala, Haryana, to re-consider the petitioner's claim for refund in light of the notification dated 05.07.2022 expeditiously.

All pending miscellaneous application(s), if any, shall also stand disposed of.

[ASHWANI KUMAR MISHRA] ACTING CHIEF JUSTICE

[ROHIT KAPOOR]

JUDGE

JULY 02, 2026

Rahul Joshi

Whether Speaking/reasoned Yes/No 2. Whether Reportable Yes/No

RAHUL JOSHI 2026.07.06 11:38 I attest to the accuracy and integrity of this document Punjab & Haryana High Court, CHD