Can application for refund be rejected while going through those documents submitted by applicant, that the authority had any doubts with respect to all such transactions without giving opportunity to heard?

application for refund

Case Title

Uni Well Exam vs State of Gujarat

Court

Gujarat High Court

Honorable Judges

Justice J.B.Pardiwala & Justice Nisha M.Thakore

Citation

2022 (3) GSTPanacea 315 HC Gujarat

C/SCA/885/2021

Judgement Date

31-March-2022

Council for Petitioner

Hardik P Modh

Council for Respondent

Utkarsh Sharma

Section

Section 54 of the CGST Act

In Favour of

Matter Remanded

The Gujarat High Court bench of Justice J.B.Pardiwala & Justice Nisha M.Thakore has held that the authority concerned shall issue a fresh show-cause notice furnishing all the relevant details including the details with respect to the transactions, which the authority has found to be doubtful so as to enable the writ-applicant– firm to file an appropriate reply and explain all such transaction.

application for refund

FACTS OF THE CASE

The writ-applicant is a ‘Partnership Firm’. The firm is engaged in the business of trading of tobacco.

It appears from the materials on record that a show-cause notice came to be issued to the firm on 11.01.2020 in the Form GST-RFD-08 calling upon the writ-applicant to show cause as to why the application for refund filed by the firm for refund should not be rejected.

The firm upon receipt of the show-cause notice as above, replied to the same in the Form GST-RFD-09. Whatever documents were required, were furnished.

It appears that as no decision was being taken by the authority concerned, the writ-applicant – firm came before this High Court by filing the Special Civil Application No.9955 of 2020.

Mr. Modh, learned advocate for the petitioner has further submitted that even though repeated requests have been made by the petitioner to decide the show cause notice and additional issue of refund, the authorities have not was required to be filed.

 

application for refund

COURT HELD

Considering the facts as recorded, held that the impugned order is hereby quashed and set aside. The matter is remitted to the authority concerned.

The authority concerned shall issue a fresh show-cause notice furnishing all the relevant details including the details with respect to the transactions, which the authority has found to be doubtful so as to enable the writ-applicant– firm to file an appropriate reply and explain all such transaction

application for refund

ANALYSIS OF THE JUDGEMENT

Let a fresh show-cause notice be issued containing all the necessary particulars within fifteen (15) days from today. Upon receipt of such show-cause notice, the writ-applicant shall file its reply within 8 days and thereafter, the authority shall give an opportunity of personal hearing and proceed to pass the final order

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Uni Well Exam

For Reference Visit:

Gujrat High Court