Refund claim adjudication must address the assessee's legal grounds; disposal on an irrelevant issue was set aside and remanded.

A refund claim filed within time did not require examination of grievance or protest, and the appellate authority was bound to decide the legal contentions raised by the assessee. Instead, it dismissed the appeal on an irrelevant ground without addressing the points in controversy, which was held unsustainable. The order was set aside and the matter was remanded to the jurisdictional Commissioner (Appeals) for fresh decision after hearing the assessee and dealing with the legal propositions raised.

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Issues: Whether the appellate order rejecting the refund claim on an irrelevant ground could be sustained, and whether the matter required reconsideration on the legal issues raised by the assessee.

Analysis: The refund claim was filed within time, so the question of grievance or protest did not arise for consideration. The appellate authority was required to examine and decide the legal contentions urged by the assessee, but instead dismissed the appeal on a ground that was not germane to the controversy and without addressing the points raised. Such disposal was not sustainable.

Conclusion: The order was set aside and the matter was remanded to the jurisdictional Commissioner (Appeals) for fresh decision after hearing the assessee and dealing with the legal propositions raised.

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