Rejection of entire refund despite noting ineligibility in respect of few invoices – an order passed in a very haste and vague manner
Facts of the case
- Refund application filed by the assessee.
- Show cause notice issued by the officer stating that the refund appears to be ineligible in respect of some of the invoices.
- OIO issued without giving adequate time to the assessee to submit the reply to SCN and without giving an opportunity of personal hearing in the matter.
Our Analysis
- Despite clear wordings in the SCN that refund appears to be ineligible in respect of some of the invoices, the officer rejected the entire amount.
- SCN was not proper as the list of invoices was also not specified.
- Since there are no provisions for remand back of the case by first appellate authority, entire set of refund application was submitted for the consideration of the authority.
- The personal hearing was not granted to the assessee.
Order passed by the appellate authority
- The refund order was set aside on account of being issued in haste and being vague.
- Direction issued to the adjudicating authority to issue the refund.
Note: In result, refund was credited to bank account of the assessee along with interest.