Appeals allowed due to lack of hearing violating natural justice principles

The appeals involved refund claims under Section 54 of the CGST Act, 2017, rejected by the adjudicating authority due to deficiencies. The appellant argued that orders were passed ex-parte without a proper hearing, violating natural justice principles. The Additional Commissioner found a lack of opportunity for a hearing and rejection without a speaking order, leading to a denial of natural justice. The impugned orders were set aside, and the appellant was directed to submit relevant documents for further processing, emphasizing adherence to natural justice principles and fair adjudication procedures.

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Issues:
- Refund claims under Section 54 of the CGST Act, 2017 rejected by the adjudicating authority.
- Lack of submission of final outcome of the referred SCN.
- Appellant's contention of passing ex-parte order without granting a hearing.
- Applicability of natural justice principles in rejecting refund claims.
- Rejection of refund claims without sufficient opportunity of hearing.
- Non-consideration of appellant's request for additional time for reply.
- Denial of natural justice due to non-passing of speaking order.
- Directions for submission of relevant documents and processing of claims.

Analysis:
The appeals involved refund claims filed by the appellant under Section 54 of the CGST Act, 2017, for ITC of 50% of IGST paid under reverse charge mechanism. The adjudicating authority rejected the refund claims due to deficiencies, including the non-submission of the final outcome of the referred SCN. The appellant contested that the orders were passed ex-parte without granting a proper hearing, violating natural justice principles. The appellant argued that the GST law mandates providing an opportunity for a hearing before rejecting refund applications. The adjudicating authority failed to consider the appellant's request for additional time to respond to the show cause notice, leading to a denial of natural justice.

During the personal hearing, the appellant reiterated their grounds of appeal and requested a fair decision. The Additional Commissioner found that the adjudicating authority had not granted a proper opportunity for a hearing and rejected the refund claims without due consideration. It was noted that the rejection without a speaking order amounted to a denial of natural justice. The Additional Commissioner set aside the impugned orders and directed the appellant to submit all relevant documents for further processing by the adjudicating authority in accordance with the provisions of the CGST Act, 2017, and CGST Rules.

In conclusion, the appeals were disposed of by setting aside the orders rejecting the refund claims. The Additional Commissioner emphasized the importance of following natural justice principles, granting sufficient opportunity for a hearing, and passing speaking orders in such matters. The appellant was directed to comply with the prescribed procedures for the processing of their refund claims, ensuring a fair and transparent adjudication process.

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