Natural justice bars rejection of a refund claim on grounds not raised in the show cause notice; matter remanded.

A refund claim for waste disposal services was rejected on a ground not stated in the show cause notice, namely that the services were not approved by the Development Commissioner. The adjudication was therefore beyond the notice and violated natural justice. The rejection could not stand in that form, and the matter was remanded to the original authority for fresh proceedings after issuance of a proper notice and adjudication on all amounts proposed for rejection. The merits were left open for reconsideration.

---

---

Issues: Whether the rejection of refund on grounds not covered by the show cause notice was sustainable and whether the matter required remand for fresh adjudication after due process.

Analysis: The refund claim relating to waste disposal services was rejected on the ground that the services were not approved by the Development Commissioner, although the show cause notice had not proposed rejection on that basis. The adjudication therefore travelled beyond the notice, resulting in violation of the principles of natural justice. As the impugned rejection was founded on a ground not put to the assessee, the matter could not be sustained in its present form and had to be sent back for a fresh notice and adjudication on all amounts sought to be rejected.

Conclusion: The rejection beyond the scope of the show cause notice was unsustainable and the matter was remanded to the original authority for fresh proceedings.

Final Conclusion: The appeal succeeded by way of remand, with all merits left open for reconsideration after issuance of a proper show cause notice.

Ratio Decidendi: An adjudication cannot sustain a demand or reject a claim on a ground not contained in the show cause notice, as such action violates natural justice and requires fresh proceedings in accordance with law.

---