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ARUN BHANSALI, ASHOK KUMAR JAIN
Chandni Crafts – Appellant
Versus
Union of India – Respondent
ORDER :
Arun Bhansali, J.
This writ petition has been filed by the petitioner aggrieved against the orders dated 29.10.2018 (Annex.2) passed by the Assistant Commissioner, Central Goods and Service Tax, Division-A, Jodhpur and order dated 15.01.2020 (Annex.3) passed by the Commissioner of Central Excise (Appeals) rejecting the appeal filed by the petitioner.
2. It is, inter-alia, indicated in the petition that the petitioner claimed refund of accumulated input tax credit on account of export of goods under letter of undertaking in terms of the provisions of Section 54 (3) of the Central Goods and Service Tax Act, 2017 ('CGST Act') amounting to Rs.6,07,553/- and Rs.8,78,605/- for the months of July, 2017 and August, 2017. The Assistant Commissioner issued provisional refund order dated 26.09.2018, partially sanctioning refund claims to the petitioner and rejecting the refund claim for the Integrated Goods and Service Tax ('IGST') and Central Goods and Service Tax ('CGST'). Where-after, the refund sanction / rejection orders dated 29.10.2018 (Annex.2) were passed, inter-alia, rejecting the claims of the petitioner.
3. Feeling aggrieved, the petitioner filed appeal before the Commissione
The rejection of a refund claim without affording the claimant an opportunity of being heard violates the principles of natural justice and the provisions of the Central Goods and Service Tax Act, 20....
The court established that tax authorities must provide clear reasons for rejecting refund claims to comply with natural justice principles.
The rejection of refund claims without providing an opportunity of being heard was a violation of the proviso to sub-rule (3) of rule 92 of the CGST Rules and the principles of natural justice, rende....
The rejection of a refund claim without a hearing violates principles of natural justice, necessitating remand for proper proceedings.
The court held that refund rejection orders must comply with Rule 92(3) of the CGST Rules, ensuring a reasonable opportunity for the applicant to be heard.
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