The petitioner provided services of preparation of Detailed Project Report for the purpose of development of Metro Rail Project for the City of Surat, Gujarat. The said service was exempt from GST. However, the Petitioner paid GST on the same under ‘mistake of law. The payment was made in August, 2017. The Petitioner file refund claim in May, 2022. The adjudicating authority rejected the refund claim on the ground of time bar. The Petitioner challenged the said order by way of writ petition.
The Delhi High Court observed that the Gujarat High Court in Cosmol Energy Private Limited v. State of Gujarat – SCA No. 11905/2020, involving identical issue, directed refund of the GST paid under a mistake notwithstanding that the application for refund was made after expiry of a period of two years. The department has not challenged the said order. Accordingly, the Court held that period of limitation for applying for a refund as prescribed under Section 54 of the CGST Act, would not apply where GST is not chargeable and it is established an amount has been deposited under a mistake of law. The Court directed the department to sanction the refund.
Delhi Metro Rail Corporation Ltd. vs. Additional Commissioner – WP(C) No. 6793 of 2023 (Del. HC)
