Hon’ble SC in the case of Union of India v Shiv Raj and Ors. reported as (2014) 6 SCC 564 upheld the principle that ‘a person who hears the issue must decide’. In a GST refund matter, Hon’ble Gujarat HC quashed the order passed by an officer who did not hear the issue. The court also observed that the officer cannot reject the refund for an amount more than specified in the show cause notice.
Read about the case [TTEC India Customer Solutions Private Limited Vs Dy Commissioner of Sales Tax] below:
Facts of the Case
- Application for refund was preferred for an amount of ₹ 2,84,04,175/-
- A show cause notice was issued proposing the rejection of the refund application to the extent of ₹ 36,85,893/-.
- Personal hearing was held before officer No. 1.
- The officer concerned proceeded on leave on personal grounds and therefore, the matter was assigned to another officer
- The newly appointed officer, without availing any opportunity of hearing passed an order on 11/13.05.2021 rejecting the entire claim of refund amounting to ₹ 2,84,04,175/-.
- Appeal was filed before first appellate authority but the matter was not listed for hearing.
Observations/Decision of the Court
- The court took cognizance of the matter pursuant to appeal being withdrawn by the petitioner.
- The officer, who has heard the petitioner has not delivered the order and the one who has passed the order impugned has done so without availing a fresh opportunity to the petitioner.
- Once a show cause notice for the refund claim of ₹ 36,85,893/- is issued at the best, the rejection that can be made is for the amount for which the show cause notice is issued and surely not for any higher amount than specified in show cause notice.
Decision
- The court quashed and set aside the order and directed the respondent authority to avail an opportunity to the petitioner in relation to the show cause notice to schedule a day for hearing.