Refund claim rejected without a speaking order was remanded for fresh consideration after hearing the applicant.

A refund application rejected through a deficiency memo without a reasoned order uploaded on the portal was held to have deprived the applicant of an effective opportunity to pursue remedies, so the memo was quashed and the matter sent back for fresh consideration. The CGST Act recognises cut-off dates for rectification and refund claims under Sections 39(9) and 54(1), but entitlement to refund must still be determined by the authority in accordance with law. The authority was directed to hear the applicant and pass a speaking order on the refund request.

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Issues: Whether the deficiency memo rejecting the refund application could be quashed and the matter remanded for fresh consideration, and whether the refund claim was governed by the limitation and rectification cut-off under the Central Goods and Services Tax Act, 2017.

Analysis: The refund application was found to have been rejected without a reasoned order being uploaded on the portal, which prevented the petitioner from effectively pursuing appellate remedies. The statutory scheme under Section 39(9) and Section 54(1) of the Central Goods and Services Tax Act, 2017 recognises cut-off dates for rectification and refund claims, but the entitlement to refund itself was left to the authority to determine in accordance with law. The authority was required to hear the petitioner and pass a speaking order on the refund application.

Conclusion: The deficiency memo dated 21.02.2024 was quashed and the refund application dated 05.02.2024 was directed to be reconsidered afresh by the authority after hearing the petitioner and by passing a reasoned order.

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