TaxTMI 
TaxTMI 
2025 (12) TMI 812
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....an RFD-08 notice for rejection of the application for refund. In the said RFD-08, the plea taken by the Respondent Department is that in comparison between GSTR 2A and 3B for the Financial Year 2019-20, excess Input Tax Credit (hereinafter "ITC") has been availed. 4. This notice was replied to by the Petitioner on 11th November, 2025 who took the stand that the subject shipping bills were duly verified by the proper officer through ICEGATE and the refunds did not relate to the period for which excess availment of ITC is now being claimed by the Department. Moreover, no Show Cause Notice (hereinafter "SCN") has been issued in respect of the said excessive availment of ITC for FY 2019-20 either under Section 73 or 74 of the Central Goods and Services Tax Act, 2017 (hereinafter "CGST Act"). Therefore, the rejection of the refund is not valid as per the Petitioner. 5. It is also the case of the Petitioner that a personal hearing was attended by the Petitioner's representative, however, since the concerned officer of the Respondent Department was on election duty, no effective hearing was granted. Finally, the impugned orders have been passed rejecting the refunds. 6. The furth....
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....with tax which has not been so paid or which has been so short paid or to whom the refund has erroneously been made, or who has wrongly availed or utilised input tax credit, requiring him to show cause as to why he should not pay the amount specified in the notice along with interest payable thereon under section 50 and a penalty leviable under the provisions of this Act or the rules made thereunder. (2) The proper officer shall issue the notice under sub-section (1) at least three months prior to the time limit specified in sub-section (10) for issuance of order. (3) Where a notice has been issued for any period under sub-section (1), the proper officer may serve a statement, containing the details of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for such periods other than those covered under sub-section (1), on the person chargeable with tax. (4) The service of such statement shall be deemed to be service of notice on such person under sub-section (1), subject to the condition that the grounds relied upon for such tax periods other than those covered under sub-section (1) are the same as are mentione....
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....ax pertaining to the period up to Financial Year 2023-24, not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised by reason of fraud or any wilful-misstatement or suppression of facts.- (1) Where it appears to the proper officer that any tax has not been paid or short paid or erroneously refunded or where input tax credit has been wrongly availed or utilised by reason of fraud, or any wilful-misstatement or suppression of facts to evade tax, he shall serve notice on the person chargeable with tax which has not been so paid or which has been so short paid or to whom the refund has erroneously been made, or who has wrongly availed or utilised input tax credit, requiring him to show cause as to why he should not pay the amount specified in the notice along with interest payable thereon under section 50 and a penalty equivalent to the tax specified in the notice. (2) The proper officer shall issue the notice under sub-section (1) at least six months prior to the time limit specified in sub-section (10) for issuance of order. (3) Where a notice has been issued for any period under sub-section (1), the proper officer may s....
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....m the date of erroneous refund. (11) Where any person served with an order issued under sub-section (9) pays the tax along with interest payable thereon under section 50 and a penalty equivalent to fifty per cent. of such tax within thirty days of communication of the order, all proceedings in respect of the said notice shall be deemed to be concluded. (12) The provisions of this section shall be applicable for determination of tax pertaining to the period up to Financial Year 2023-24." 10. In addition, it would also be relevant to consider Rule 92(3) of the Central Goods and Services Tax Rules, 2017, which reads as under: "92. Order sanctioning refund.-(1)Where, upon examination of the application, the proper officer is satisfied that a refund under sub-section (5) of section 54 is due and payable to the applicant, he shall make an order in FORM GST RFD-06 sanctioning the amount of refund to which the applicant is entitled, mentioning therein the amount, if any, refunded to him on a provisional basis under sub-section (6) of section 54, amount adjusted against any outstanding demand under the Act or under any existing law and the balance amount refund....
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....and a legal necessity, marking the commencement of quasi-judicial adjudication under the Act. 67. A show-cause notice sets the law in motion concerning the liability under the statute, containing charges that a specific person is called upon to answer. In other words, it sets out the alleged violations of legal provisions and requires the assessee to explain why the duty should not be recovered from them. Thus, a show-cause notice cannot be vague, nor can any allegations be made without evidence being commensurate with the gravity of the charges levelled against the noticee. 68. It sets forth the framework for the proceedings proposed to be undertaken and provides the noticee with an opportunity to submit their explanation before the adjudicating authority. It outlines the background for the initiation of such proceedings, whether arising from an audit of accounts by the internal audit wing, scrutiny of returns, or intelligence gathered by officers of the Audit and Intelligence Commissionerate. It is further mandated that the authority issuing the notice must meticulously set out all relevant legal provisions under which the alleged contraventions are framed. The ....