Application for GST Refund can’t be Rejected Without Giving an Opportunity of Hearing to Applicant: HC
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- Last Updated on 1 June, 2023
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Case Details: Knowledge Capital Services (P.) Ltd. v. Union of India - [2023] 150 taxmann.com 515 (Bombay)
Judiciary and Counsel Details
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- Nitin Jamdar & Abhay Ahuja, JJ.
- Bharat Raichandani & Rishabh Jain, Advs. for the Petitioner.
- Himanshu Takke for the Respondent.
Facts of the Case
The petitioner was engaged in the business of providing information technology enabled services. It exported its services under a letter of undertaking without payment of integrated tax and claimed refund of the accumulated input tax credit on account of the export of services. The department rejected the refund claim on the ground that there were deficiencies in the petitioner’s application. The petitioner filed writ petition against the rejection of refund and contended that no defect sheet was provided.
High Court Held
The Honorable High Court noted that once application for refund is made, it has to be processed by the department. If there is lacunae, the applicant is to be informed to remove the lacunae and to submit the claim after that; the application is to be considered for either grant or rejection of the refund.
However, no application for refund should be rejected without giving an opportunity to the applicant of being heard. In the instant case, no hearing was given to petitioner before rejection of refund application which was contrary to proviso to rule 92(3) of Central Goods and Services Tax Rules, 2017. Therefore, it was held that the impugned order was liable to be set aside and application was restored.
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