2024 (2) TMI 597 - HC - GST

Seeking refund of GST - appellant has not fulfilled the eligibility conditions for taking input tax credit - HELD THAT - It is not apparent from the order as to why or on what basis findings have been returned that petitioner does not fulfil the eligibility conditions. The order is cryptic and the reasoning is not emanating from the order and there is no specific consideration of the factual matrix or the contentions of the petitioner in the Order-in- Appeal. Accordingly, the Order-in-Appeal cannot be sustained and the matter calls for a remit. The appeal is restored on the record of the Appellate Authority. The Appellate Authority shall decide the appeal afresh and pass a speaking order after giving an opportunity of personal hearing to the petitioner.

Summary

Issues involved:
The judgment deals with the appeal against the dismissal of a refund application under GST, focusing on the inadequacy of reasoning in the Order-in-Appeal.

Summary:

Issue 1: Dismissal of refund application
The petitioner challenged the Order-in-Appeal dated 09.09.2021, which upheld the rejection of the refund application filed by the petitioner. The Adjudicating Authority had rejected the application on 21.08.2020, leading to the appeal before the Appellate Authority.

Details:
The Order-in-Appeal was criticized for being cryptic and not addressing the submissions made by the petitioner. It was noted that the order merely referred to a Board Circular and concluded that the petitioner did not fulfill the eligibility conditions for input tax credit without providing a clear rationale for this decision. Consequently, the High Court set aside the Order-in-Appeal and remitted the matter back to the Appellate Authority for a fresh decision after giving the petitioner an opportunity for a personal hearing.

Conclusion:
The High Court allowed the appeal, setting aside the Order-in-Appeal and directing the Appellate Authority to reconsider the matter with proper reasoning and a speaking order.