In a clarification issued to its field formations, the CBIC said if the refund demand or show-cause notice is sent beyond the stipulated period, the entire proceeding has to be dropped. "Where show cause notice under sub-section (1) of section 74 of CGST Act was issued for erroneous refund beyond a period of 2 years and 9 months from the date of erroneous refund, the entire proceeding shall have to be dropped," said a CBIC circular.
