The Delhi High Court has set aside the order issued by the Appellate Authority, which rejected the petitioner’s refund claim. The court found that the petitioner was not given a chance to present their case and that the rejection was based on new reasons that were not originally mentioned in the Show Cause Notice. This decision highlights the importance of fairness and following proper procedures in legal matters. It reminds us that everyone should have the opportunity to be heard and respond to any allegations made against them.
Who filed the writ?
- DL Support Services India Private Limited filed the writ petition in the High Court of Delhi.
Who is the Respondent?
- Additional Commissioner, CGST Appeals II Delhi & Others
Where the Writ is filed
- The Writ is filed in the Honourable High Court of Delhi
What is the reason for filing the writ?
- The petitioner filed the writ petition challenging an order by the Additional Commissioner CGST Appeals II Delhi denying the petitioner a refund of integrated tax paid on the export of services.
What is the respondent’s view?
- The respondents argued that the Appellate Authority had the jurisdiction to decide the appeal on a completely new basis, as the new ground for denial of refund (that the petitioner was an intermediary) was not a subject matter of either the show cause notice or the enquiry before the Adjudicating Authority.
Court’s judgment and reason behind it
- The High Court agreed with the petitioner and set aside the impugned order. The matter was remanded to the Appellate Authority to decide the appeal afresh, including the question of whether the Appellate Authority has the jurisdiction to set up a new case against the assessee.
- The High Court reasoned that the Appellate Authority does not have the jurisdiction to decide an appeal on a completely new basis if the new ground for denial of the refund was not a subject matter of either the show cause notice or the enquiry before the Adjudicating Authority.
- The High Court also held that the Appellate Authority must afford the assessee an opportunity to be heard before deciding an appeal on a new basis.
- The High Court further held that the Appellate Authority must decide the appeal expeditiously.