A quasi-judicial authority cannot initiate proceedings on issues already adjudicated by a higher authority, thus reinforcing the principles of administrative discipline and the finality of appellate decisions.

JUDGMENT :

MURAHARI SRI RAMAN, J.

Craving to invoke extraordinary jurisdiction under the provisions of Articles 226 and 227 of the Constitution of India against issue of Demand-cum-Show Cause Notice dated 25.09.2025 in Form GST DRC-01 (“DSCN”, hereinafter referred to) for adjudication under Section 73 and levy of interest under Section 50 coupled with imposition of penalty under Section 122 of the Central Goods and Services Tax Act, 2017/the Odisha Goods and Services Tax Act, 2017 (for brevity, “GST Act”), and Summary of Show Cause Notice in Form GST DRC-01 dated 28.10.2025, the writ petition is filed with the prayer(s) for grant of following relief(s):

"In the circumstances stated above, it is humbly prayed that this Hon‘ble Court may be graciously pleased to:

(a) Issue a Rule NISI in the nature of Writ of Mandamus and/or any other appropriate Writ/Writs calling upon the opposite parties along with records to show cause;

(b) Issue Writ of Mandamus and/or any other appropriate Writ(s), by quashing the entire proceedings initiated under Section 73 of the Act, by issuing of impugned Show Cause Notices by the opposite party No.1 in Annexure Nos.1 & 1A Series;

(c) Why the action of the opposite parties shall not be declared as illegal, unjust and flagrant violation of statute;

(d) If the opposite parties fails to show cause or shows false or insufficient causes make the said Rule NISI absolute;

(e) Pass such other Order/Orders and/or direction/directions as this Hon’ble Court may deem fit and proper;

(f) And/or allow this Writ Petition with cost And, for this act of kindness, the Petitioner shall as in duty bound, ever pray."

Facts:

2. Facts as unfurled by the petitioner in the writ petition reveal that the petitioner, a private limited company incorporated under the Companies Act, 1956, being assigned GSTIN 21AAJCA0870E1Z7 within the jurisdiction of the Central Goods and Services Tax, Bhubaneswar-I Division, made application in Form GST RFD-01 (prescribed under Rule 89 of the Central/ ODISHA GOODS AND SERVICES TAX RULES , 2017), dated 04.07.2024 claiming refund of Rs.14,80,02,002/- citing reason therein, “Refund of Input Tax Credit on Export of Goods and Services without Payment of Integrated Tax”.

2.1. A Show Cause Notice in Form GST RFD-08 dated 30.07.2024 as prescribed under Rule 92 of the Central Goods and Services Tax Rules, 2017/the ODISHA GOODS AND SERVICES TAX RULES , 2017 (Collectively, “GST Rules”) was issued proposing rejection of application for refund with the following reason:

"Your applied, refund period is April, 2022 to March, 2023:

You have applied for a refund of Rs.14,80,02,002/- on 2,79,910 MTS for export of Iron Ore Fines amounting to Rs.1,46,02,54,701/- for the tax period April, 2022 to March, 2023, under refund of export of goods without payment of tax. However, while analyzing the documents, it is found that out of 2,79,910 MTS iron ore fines, you have made a short shipment of 3,840 MTS iron ore fines valued to Rs.2,61,21,42Z22/-.

Hence, you are only eligible for proportionate refund, but you have applied for full refund, which is liable for necessary action under Section 74 of the CGST Act, 2017."

2.2. The petitioner responding to such notice vide Form GST RFD-09, dated 06.08.2024, admitted to have claimed inadmissible claim of refund to the tune of Rs.25,56,052/- and requested for processing rest of the amount eligible for refund.

2.3. Upon verification of relevant documents produced with reference to the claim made in the refund application and considering the reply, the Assistant Commissioner, Central Goods and Services Tax and Central Excise, Bhubaneswar-I Division issued the Refund Sanction- Cum-Speak