Carbon Resources Private Limited Vs Union of India (Jharkhand High Court)
The Jharkhand High Court disposed of two writ petitions together by a common order, as they involved similar facts and issues. The petitions challenged a refund rejection order dated 23 May 2025 and a subsequent rectification order dated 30 May 2025 passed by the Assistant Commissioner, Central Goods and Services Tax, Division Giridih. The petitioner sought quashing of both orders on the ground that they were passed without considering the documents submitted and in violation of the principles of natural justice.
The Court examined the procedure prescribed under Rule 92(3) of the CGST/JGST Rules, 2017, which mandates that when a refund claim is proposed to be rejected, the proper officer must issue a notice in Form GST RFD-08, grant the applicant fifteen days to submit a reply in Form GST RFD-09, and provide an opportunity of being heard before passing an order in Form GST RFD-06. The proviso to the rule specifically states that no refund application shall be rejected without granting the applicant an opportunity of hearing.
It was admitted before the Court that there was non-compliance with Rule 92(3). Instead of the statutory period of fifteen days, the petitioner was granted only seven days to furnish a reply and to appear in person. Further, despite repeated requests, the petitioner was not afforded an opportunity of personal hearing prior to the passing of the refund rejection order dated 23 May 2025.
