HC ordered dept. to reconsider rejected refund application with a hearing opportunity

Case Details: Adisan Laboratories Pvt. Ltd. v. Union of India - [2023] 147 taxmann.com 152 (Bombay)

Judiciary and Counsel Details

• • Nitin Jamdar & Gauri Godse, JJ.
  • Makrand Joshi for the Petitioner.
  • Karan Adik & Ram Ochani for the Respondent.

Facts of the Case

The petitioner was a company registered under GST and it filed application claiming refund of ITC. It received an email from the department that a notice has been issued to the petitioner in respect of its refund claim and advised to access notice by logging to GSTN portal. It wrote to the department that notice was not served and notice was not available on GSTN portal. Thereafter, the petitioner received order of rejection of refund claim and it filed writ petition against the same. It was contended that any opportunity as required or any notice was not given to the petitioner.

High Court Held

The Honorable High Court noted that Rule 92 of the Central Goods and Services Tax Rules, 2017 lays down the methodology for processing the application and no application for refund shall be rejected without giving an opportunity of being heard. However, in the instant case, the procedure was not followed since notice being neither received by petitioner nor made available on GSTN portal before rejecting claim of petitioner. Thus, it was held that the impugned order would be quashed and set aside and the application would be restored with direction to department to follow methodology under Rule 92.