Application for GST Refund can’t be Rejected Without Giving an Opportunity of Hearing to Applicant: HC

  • Blog|News|GST & Customs|
  • 2 Min Read
  • By Taxmann
  • |
  • Last Updated on 1 June, 2023

GST Input Tax Refund Claim

Case Details: Knowledge Capital Services (P.) Ltd. v. Union of India - [2023] 150 515 (Bombay)

Judiciary and Counsel Details

    • Nitin Jamdar & Abhay Ahuja, JJ.
    • Bharat RaichandaniRishabh Jain, Advs. for the Petitioner.
    • Himanshu Takke for the Respondent.

Facts of the Case

The petitioner was engaged in the business of providing information technology enabled services. It exported its services under a letter of undertaking without payment of integrated tax and claimed refund of the accumulated input tax credit on account of the export of services. The department rejected the refund claim on the ground that there were deficiencies in the petitioner’s application. The petitioner filed writ petition against the rejection of refund and contended that no defect sheet was provided.

High Court Held

The Honorable High Court noted that once application for refund is made, it has to be processed by the department. If there is lacunae, the applicant is to be informed to remove the lacunae and to submit the claim after that; the application is to be considered for either grant or rejection of the refund.

However, no application for refund should be rejected without giving an opportunity to the applicant of being heard. In the instant case, no hearing was given to petitioner before rejection of refund application which was contrary to proviso to rule 92(3) of Central Goods and Services Tax Rules, 2017. Therefore, it was held that the impugned order was liable to be set aside and application was restored.

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

Leave a Reply

Your email address will not be published. Required fields are marked *

Everything on Tax and Corporate Laws of India

To subscribe to our weekly newsletter please log in/register on

Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied