GSTAT Kolkata says Section 54 Limitation Does Not Govern Refund of Appeal Pre-Deposit

Jhawar Suppliers had paid ₹1,10,510 through Form GST DRC-03 towards the mandatory pre-deposit for a service tax appeal under Section 35F of the Central Excise Act, 1944, as applicable to service tax. The payment was made through the GST electronic cash ledger because of login issues with the ACES portal. After the service tax demand was set aside, the taxpayer sought a refund, which was rejected by the Department on the ground that the claim was filed beyond the two-year period under Section 54 of the CGST Act. GSTAT Kolkata held that the amount was a statutory appeal pre-deposit under the erstwhile service tax law and not tax paid under the GST enactment. Section 54 limitation was therefore inapplicable. The Tribunal also held that the doctrine of unjust enrichment did not apply to refund of an appeal pre-deposit and dismissed the Revenue's appeal.