Any restrictive amendment for filling refund claim to be applied prospectively and cannot curtail vested rights

Last updated: 25 June 2026

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The Delhi High Court has ruled that any new restrictions on filing refund claims must be applied prospectively and cannot take away rights that taxpayers already possess. The court clarified that the relevant date for calculating the two-year limitation period for unutilised Input Tax Credit (ITC) refunds, for periods before an amendment, should be determined by the old rules. This means that amended provisions cannot be applied retrospectively to invalidate claims that were valid under the previous regulations.

Court :
Delhi High Court

Brief :
The Hon'ble Delhi High Court in the case of Kanika Exports v. Union of India & Ors. along with M/s Malik Seasoning and Spices Pvt. Ltd. v. Commissioner of GST [ W.P.(C) 12512/2021 and W.P.(C) 17538/2022, order dated April 18, 2026] held that the relevant date for computing limitation period of two years under Section 54 for refund of unutilised ITC (including exports without payment of tax and inverted duty structure) for the period prior to amendment would be reckoned as per the unamended Explanation 2(e), i.e., end of the financial year, and the amended provision cannot be applied retrospectively to curtail vested rights.

Citation :
W.P.(C) 12512/2021 and W.P.(C) 17538/2022, order dated April 18, 2026

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1 Year PLAN

1999

(Excl. of GST ₹359)

2 Years PLAN

3499

(Excl. of GST ₹629)

BEST VALUE

3 Years PLAN

4999

(Excl. of GST ₹899)

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Attached File : 671907_6023_kanika_exports.pdf

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Judgement posted by

Bimal Jain

Service

FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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