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This refutation is by Mufti Ahmad Yar Khan Naimi. He wrote an article on biddah which can be read from here :  http://mrehan786.blogspot.in/2011/01/innovation-bidat-in-islam-ja-al-haq.html

(a) FIRST REFUTATION: If, without created any exception, we say that every new act is a Bid’ah and every Bid’ah is an evil act, then why you divided the Bid’ah into two types i.e. “biddah in deen” and “biddah in worldly matters”? If anyone asks us, why do you classify Bid’ah into good and bad? Then, we must say, from where did you got the concept of classification of Bid’ah into two? Did holy Prophet (pbuh) classify the Bid’ah into “biddah in deen” and “biddah in worldly matters”? If holy Prophet (pbuh) did not classify the Bid’ah into two types, then this classification of yours itself becomes a Bid’ah, because none of the companions (as) classify the Bid’ah into “biddah in deen” and “biddah in worldly matters”, then how can you classify it?  If your classification of Bid’ah, based on genuine reasoning, into “biddah in deen” and “biddah in worldly matters” is acceptable, then the classification of Bid’ah, based on Quran and hadith, into “Hasana” and “Saiyeea” is also permis...

REGARDING THE VERSE OF SURAH MA'IDAH WHICH SAYS:   "Today I have perfected your   din   for you, completed My Blessing upon you, and have chosen for you Islam (as)   din " [Qur'an 5:3] It means that Islamic Aqeeda is completed now. Any addition in Islamic beliefs [aqeeda] will be considered an evil innovation. Where as innovation in Fiqh or Hadiths [branch of sciences of hadiths , Fiqh is a new innovation as well] is a Good innovation and mustahab in most cases. Ahlus sunnah wa jammah interpret Quran and hadith is correct way so there no contradiction is present between the two. Unlike others.   When Prophet Mohammad (SAWS) appeared, the Islamic laws were made most comprehensive in the shape of Quran. Before that, the scriptures of other prophets did not contain so much details. The basics of Islam were completed during Prophet’s (SAWS) time.  If a scientist tells us more details about the solar system and discovers new planets which were unknown...

READ FROM HERE: http://www.lamppostproductions.com/wp-content/uploads/2011/03/SunnaBida.pdf

1 An Excellent Innovation 1 Shaykh `Abdul Hayy al-`Amrawi and Shaykh `Abdul Karim Murad Translated: Ustadha `Aisha Bewley Released by www.marifah.net 1428 H The meaning of the words of `Umar , “An excellent innovation” On page 110, you mentioned regarding the words of `Umar , “An excellent innovation,” that the scholars who are considered all agreed that it refers to a linguistic innovation, i.e. something new. We want to know the source of this consensus because the commentators of Hadith, including al-Qastallani and Ibn Hajar in their commentary on the Sahih al-Bukhari, who are those who are trusted in Hadith, agree that it is not a linguistic innovation, as you claim. You must look at the text of the Hadith of al-Bukhari from `Abdul Rahman ibn `Abdul Qari’. He said, One night in Ramadan I went out with “`Umar ibn al-Khattab to the mosque and the people were separated in different groups. One man was praying on his own and another man with a group behind him following his prayer. `U...