Restriction of Input Tax Credit under Rule 86A applies only to fraudulently or ineligible availed credit; mere wrongful recipient availment is insuffi...
Refund rejection without a reasonable opportunity to reply to the show-cause notice breached principles of natural justice. Although the Department had discretion to grant further time, that discretion had to be exercised fairly; where the taxpayer sought extension the next day to gather documents and file a reply, immediate rejection on expiry of a short period showed unwarranted haste. The impugned order was quashed, the taxpayer was given two weeks to file its reply with supporting documents, and the Department was left free to pass a fresh order thereafter.
Refund rejection without a reasonable opportunity to reply to the show-cause notice breached principles of natural justice. Although the Department had discretion to grant further time, that discretion had to be exercised fairly; where the taxpayer sought extension the next day to gather documents and file a reply, immediate rejection on expiry of a short period showed unwarranted haste. The impugned order was quashed, the taxpayer was given two weeks to file its reply with supporting documents, and the Department was left free to pass a fresh order thereafter.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4817 
Join Channel 
