2023 (11) TMI 771 - HC - GST

Rejection of refund claim - Principles of natural justice - scope of impugned order and reply to SCN - grievance of the petitioner is that none of the contentions as urged by the petitioner in its reply filed to the show cause notice are addressed in passing the impugned order - HELD THAT - Attention is drawn to paragraph 5 of the impugned order, contents of which according to Mr. Raichandani, can hardly be called to be any reasons to reject, any of the contentions as urged by the petitioner, as also without considering the documents which were placed on record of the Assistant Commissioner. Learned counsel for the revenue, considering the contentions as urged on behalf of the petitioner, fairly accepting that the impugned order fails to consider materials, makes a statement that the respondents be permitted to withdraw the impugned order with liberty to issue a fresh show cause notice, on the refund application, to be adjudicated in accordance with law, after considering the reply of the petitioner as also after granting an opportunity of hearing to the petitioner. The impugned order dated 03 February, 2023 stands withdrawn as per statement as made on behalf of the respondents and accordingly stands set aside as withdrawn - Petition disposed off.

Summary

Issues involved:
The main issue in this case is whether the Assistant Commissioner of CGST Division VI, Mumbai Central Commissionerate was correct in law in rejecting the refund application filed by the petitioner.

Details of the judgment:
The petitioner had sought various reliefs through the petition, including quashing the Refund Rejection Order and the Show Cause Notice, directing the grant of refund claimed under Section 54 of the Central Goods and Services Tax Act, 2017, and other appropriate orders. The show cause notice was issued to the petitioner, who responded before the impugned order was passed. The petitioner's grievance was that the impugned order did not address any of the contentions raised in the reply to the show cause notice. The court noted the inadequacy of reasons provided in the impugned order and the failure to consider the documents submitted by the petitioner.

The counsel for the revenue, acknowledging the deficiencies in the impugned order, agreed to withdraw it and issue a fresh show cause notice for proper adjudication. Consequently, the court disposed of the petition by ordering the withdrawal of the impugned order, directing the issuance of a fresh show cause notice within two weeks, and instructing that the reply to the show cause notice be placed on record. The petitioner was to be given an opportunity to be heard, and a reasoned order was to be passed within two weeks from the date of the hearing. The court kept all contentions of the parties open and concluded the judgment without imposing any costs.

This judgment highlights the importance of proper consideration of contentions raised by parties, the necessity of providing adequate reasons for decisions, and the opportunity for parties to be heard before reaching a final decision in matters concerning refund applications under the Central Goods and Services Tax Act, 2017.