Case Note & Summary
The dispute arose from a writ petition filed under Article 226 of the Constitution of India seeking a mandamus directing refund of excess Goods and Services Tax collected on a property transaction. The petitioner had purchased property comprising land and construction for Rs. 4,45,26,000, with Rs. 3,00,00,000 allocated to land. After obtaining a tax payment certificate from the supplier, the petitioner filed an online refund application on July 23, 2025, for tax paid on the land portion. Following a deficiency memo regarding Aadhar authentication, which the petitioner rectified, the application was re-filed and acknowledged. However, a show-cause notice proposing rejection was issued on October 1, 2025. The petitioner sought adjournment on October 13, 2025, citing consultant engagement in tax audit work, but the authorities ignored this request and passed an ex-parte rejection order the same day. The core legal issue was whether this ex-parte order violated Section 75(5) of the GST Act, which mandates granting adjournments upon sufficient cause, and Rule 92(3) of the GST Rules regarding stipulated time for such requests. The petitioner argued that the order should be quashed as it disregarded statutory adjournment provisions and denied opportunity of hearing. The respondents opposed, contending the petitioner was disentitled to refund and had been granted one hearing opportunity. The court found the dates and adjournment request undisputed, noting the petitioner had not exhausted the three adjournments permitted under Section 75(5). It held that the ex-parte order was passed de hors the statutory provisions, violating both the specific adjournment mandate and principles of natural justice. Consequently, the court quashed the impugned order and remanded the matter for fresh decision after giving the petitioner a proper hearing, to be completed within twelve weeks.
Headnote
A) Constitutional Law - Writ Jurisdiction - Article 226 of Constitution of India - Writ of Mandamus - Petitioner sought writ of mandamus directing refund of excess GST tax collected - Court exercised jurisdiction under Article 226 to quash impugned order violating statutory provisions - Held that writ petition maintainable for violation of statutory adjournment rights (Paras 3, 9). B) Tax Law - Goods and Services Tax - Refund Proceedings - Section 75(5) Central/Gujarat Goods and Services Tax Act, 2017 - Adjournment Rights - Petitioner filed refund application for tax on land portion of property purchase - Show-cause notice issued proposing rejection - Petitioner sought adjournment within stipulated time under Rule 92(3) - Authorities passed ex-parte order ignoring adjournment request - Court found violation of Section 75(5) which mandates granting adjournments upon sufficient cause - Held that impugned order passed de hors statutory provisions and quashed (Paras 4-9). C) Administrative Law - Natural Justice - Opportunity of Hearing - Section 75(5) Central/Gujarat Goods and Services Tax Act, 2017 - Ex-parte Orders - Authorities passed order rejecting refund application without responding to adjournment request - Petitioner had not exhausted three adjournments permitted under statute - Court found denial of opportunity of hearing violated principles of natural justice - Held that matter remanded for fresh decision after proper hearing (Paras 7-9).
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Issue of Consideration: Whether the ex-parte order rejecting the refund application was valid when passed despite the petitioner's timely request for adjournment under Section 75(5) of the GST Act and Rule 92(3) of GST Rules, 2017
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Final Decision
Impugned order quashed and set aside, matter remanded to respondent to decide refund application afresh in accordance with law after giving opportunity of hearing to petitioner within 12 weeks from date of receipt of order
