Retrospective GST refund amendment upheld, making recovery automatic and defeating challenge to the show cause notice.

Retrospective amendment to Rule 89(5) of the CGST Rules rendered the refund liable to be returned, and the Supreme Court had already upheld that amendment. On that basis, recovery of the refunded amount followed as an automatic legal consequence, so the challenge to the show cause notice and the consequential recovery order failed. The taxpayer's failure to file a reply to the notice did not change the legal position or affect maintainability of the challenge.

---

---

Issues: Whether the challenge to the show cause notice and consequential order seeking recovery of refund was maintainable in view of the retrospective amendment to Rule 89(5) of the Central Goods and Services Tax Rules, 2017.

Analysis: The refund had become liable to be returned because of the retrospective amendment to Rule 89(5) of the Central Goods and Services Tax Rules, 2017, and that amendment had been upheld by the Supreme Court. In that situation, recovery of the refunded amount followed as an automatic consequence. The petitioner's non-filing of a reply to the show cause notice did not alter the legal position.

Conclusion: The challenge to the show cause notice and the consequential recovery order was rejected.

---