Appeal against Refund Rejection Order

[Ashiesh Prremji]

Dear Sir,

We got Refund rejection order RFD-06 on the ground that we didn't reply SCN issued under RFD-08 within time. So, now we are going to file Appeal (Re-apply in RFD-01 on account of Order).

Sir, Actually while filing original RFD-01, we declared higher Domestic Turnover by mistake due to which Refundable amount was less claimed. my query is how should we address this issue while Re-apply for Refund ?

Whether while filing Appeal (RFD-01 on Account of Order) amount to be declared as 'Refund' as was earlier claimed and the Supporting documents working should be corrected by declaring correct domestic turnover ?

Please suggest how should we address this issue....

Thank You,

[KASTURI SETHI]

Sh.Ashiesh Ji, Whether the department accorded personal hearing or not before rejecting refund ?

[KASTURI SETHI]

Although you have not replied to the SCN, yet as per Section 75 (5) of CGST Act, three opportunities for personal hearing to be given.

Any case where tax or refund of tax paid is involved, the case cannot decided without holding personal hearing.

[Ashiesh Prremji]

Sir, In SCN it's said to submit reply oral/written in 15 days, otherwise case will be decided Ex-parte. Actually we were not able to check mail, after time lapse of giving reply of SCN we came to know when we checked Refund status on portal. On telephonic discussion, He said we didn't Reply online on portal within time although we sent our Reply through mail but He was not able to process Refund so now He will pass Rejection Order and we need to apply through Appeal.

So, my query is to address the mistake in Appeal which we did in earlier RFD-01 as stated in my query. Our whole amount has been Rejected in order. After came to know mistake of declaring excess domestic turnover Refund was less claimed, now issue is whether we need to claim Refund of Rejected amount only with correct Supporting documents in 'Appeal' or we should claim correct amount of Refund but this will more than Refund claimed/Rejected in Original RFD-01/ Rejection Order ?

[KASTURI SETHI]

Dear Sir,

Query-wise my reply is as under:-

Reply to Q.No.1 :

Filing reply to SCN via email amounts to not filing reply. The department is right on this point but at the same time the opportunity for personal hearing is statutorily required. In spite of non-filing of reply to SCN, the refund claim cannot be rejected without personal hearing. It is against the principles of natural justice. This will be one of grounds of appeal in this case.

Reply to Q.No.2 :

While filing appeal you should mention the refund of amount rejected but you should mention the correct amount within bracket and explain the factual in the 'brief facts of the case' as well as in the grounds of appeal. It is a calculation mistake and you are not going beyond the issue by way of claiming correct amount of refund claim.It is your right to claim correct amount at appellate stage.

It is worthwhile to mention that in one of my client's case, the party forgot to claim small scale exemption of ₹ 10 lakhs (Threshold exemption service tax) in the reply to SCN and also in the case of personal hearing. This new point was raised before the Commissioner (Appeals). The Commissioner (Appeals) allowed the benefit of threshold exemption of ₹ 8 lakhs on which ST of ₹ 96,000/- Approx. was involved. The party got the refund of ₹ 96,000/- and accordingly penalty and interest were also reduced. It was in the interest of natural justice. It was additional point raised before the Commissioner (Appeals). At that time small scale exemption of ₹ 8 lakhs was admissible.

So in my view, you must fight for correct amount.

[Ashiesh Prremji]

Thanks a lot for your valuable advice Sir, it's great help for me.

[KASTURI SETHI]

Sh.Ashiesh Ji, My mission is to solve the problems of TMI's readers within letter and spirit of law coupled with practical approach adopted by the department in the interest of natural justice. We cannot forget that laws are framed for the welfare of the public. If any officer is honest as well as bold, he will give you justice. Here lady luck plays the role.

[KASTURI SETHI]

Needless to say our presentation in the course of personal hearing or otherwise before the officer must be full of humbleness, politeness, discipline, sweetness, submissiveness to get our work done from the Govt.Officer. "It is tone that matters a lot in every field of life"-------B.K.Shivani, Goodwill Ambassador of World Psychiatrist Association. I hope you have followed what I want to say.

[Ashiesh Prremji]

Thank you so much for your guidance Sir! I will try to follow these in all ways of my Journey.

[V Lakshmikumaran]

Should not an appeal against RFD-06 be filed under Form APL-01?

AI Summary

Individual advised to appeal GST refund rejection; address SCN response delay and turnover error. File under APL-01. An individual sought advice on addressing a refund rejection under GST, where the rejection was due to a failure to respond to a Show Cause Notice (SCN) in time. The error involved mistakenly declaring a higher domestic turnover, leading to a lower claimed refund. The discussion highlighted the necessity of a personal hearing before rejecting the refund, as per natural justice principles. Advice was given to file an appeal, correcting the turnover error and claiming the correct refund amount. It was suggested that the appeal should include factual explanations and be filed under the appropriate form, APL-01.