Appellate authority cannot reject refund on a ground not indicated in SCN

Hindustan Motors Limited Vs Commissioner of Customs And Central Goods And Service Tax (CESTAT Delhi)

In a recent case involving Hindustan Motors Ltd and the Commissioner of Customs and Central Goods and Service Tax (CESTAT Delhi), the issue of whether an appellate authority can reject a refund claim on grounds not specified in the show cause notice (SCN) came under scrutiny. The case revolves around the rejection of a refund claim of Rs. 43,46,830/- by the Commissioner (Appeals), Indore.

Detailed Analysis:

1. Background: Hindustan Motors Ltd had imported component parts of engines during a specific period. Due to a classification dispute on the imported goods, they paid the differential customs duty under protest. Subsequently, they filed a refund claim for the amount paid, along with the necessary documents.

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