2026-VIL-84-GSTAT-ERN
  1. Home
  2. 2026-VIL-84-GSTAT-ERN

SGST Tribunal

GST - Refund of unutilized Input Tax Credit under inverted duty structure - Section 54(3) and Rule 89(5) of CGST Act 2017 - Show cause notice for rejection of refund on ground of ineligible ITC - Show cause notice was vague lacking invoice-wise details and specific grounds for rejection - First Appellate Authority introduced new grounds for rejection not contained in show cause notice or adjudication order - Whether refund application can be rejected on ground of ineligible ITC without initiating formal proceedings under Section 73 or Section 74 - HELD - The show cause notice must be specific detailed and clear indicating the precise grounds and basis for proposed action. Where a show cause notice merely alleges ineligibility without furnishing invoice-wise details nature of ineligibility or specific computation it denies the assessee proper opportunity to defend its case - The determination of eligibility or otherwise of ITC is permissible only under Section 73 or Section 74 of CGST Act. There cannot be any disallowance of ITC dehors these provisions. Until and unless an order has been passed under Section 73 or Section 74 disallowing the ITC taken such ITC is presumed to be in order - Where ITC has been availed in statutory returns and not challenged through formal proceedings under Section 73 or Section 74 the same cannot be reopened in refund proceedings under Section 54 as a collateral matter. The refund proceedings under Section 54(3) read with Rule 89(5) cannot be converted into proceedings to re-adjudicate eligibility of ITC which is the exclusive domain of Section 73 or Section 74 – The settled position that there cannot be two different yardsticks one for permitting credit and another for eligibility to refund is legally well-established. Without questioning the credit taken the eligibility to refund cannot be questioned - Further, the Appellate Authority cannot transgress the boundaries of the show cause notice and introduce new grounds for rejection not contained therein. Such introduction of extraneous grounds violates principles of natural justice - The portion of the Order-in-Appeal sustaining denial of refund is set aside. The refund application is to be allowed for the amount rejected. The grounds for rejection introduced by the Appellate Authority beyond the SCN are set aside – The appeal is allowed
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Weekly Summary

VIL Video

GST Critical issues: ITC on...
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Security-Code
New Code?

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Security-Code
New Code?

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?