2022 (7) TMI 1398 - HC - GST

Refund Claim Rejection Overturned as Appellate Authority Failed to Consider Documents Under Rule 112(1) of CGST Rules

Rakesh Manda Versus Assistant Commissioner of CGST & Central Excise, Cooch Behar Division & Ors.

Rakesh Manda Versus Assistant Commissioner of CGST & Central Excise, Cooch Behar Division & Ors. - 2023 (71) G.S.T.L. 45 (Cal.) Issues:1. Writ of Mandamus for setting aside orders rejecting refund claim.2. Lack of deficiency memo served to petitioner.3. Dismissal of appeal due to missing documents.4. Appellate authority's failure to consider documents submitted.5. Jurisdiction of appellate authority to direct production of documents.Analysis:The petitioner sought a writ of Mandamus to challenge the orders passed by the Assistant Commissioner and Additional Commissioner of CGST and Central Excise, rejecting the refund claim under Section 54 of the CGST Act, 2017. The petitioner argued that no deficiency memo was served, hindering the submission of required documents. On the other hand, the respondent authorities contended that a specific procedure exists for claiming refunds, emphasizing the need for documents at the adjudication stage. The petitioner's failure to demonstrate sufficient cause for not submitting documents earlier led to the appeal's dismissal by the appellate authority.The High Court noted that the appellate authority should have considered the documents submitted by the petitioner in support of the refund claim, irrespective of prior deficiencies. Rule 112(1) of the CGST Rules allows for additional evidence under certain circumstances, empowering the appellate authority to direct document production. The court highlighted that the appellate authority's failure to assess the necessity of these documents for the appeal's disposal was a critical oversight.Despite the respondent's inability to establish the documents' irrelevance, the appellate authority neglected its duty by not considering the petitioner's submissions. Consequently, the High Court set aside and quashed the order of the Additional Commissioner, directing a rehearing of the appeal with due consideration of the filed documents. The court instructed an expeditious disposal, preferably within four weeks, emphasizing the importance of a fair hearing and document evaluation in the appellate process.In conclusion, the High Court allowed the petition, providing directions for the rehearing of the appeal without imposing any costs. The parties were advised to promptly obtain a certified copy of the order upon fulfilling legal requirements, ensuring efficient compliance with the court's directives.