Sun Pharma Laboratories Limited vs. The Union Of INDIA And Ors.
Held
The High Court set aside the Appellate Authority's order, finding it violated principles of natural justice by rejecting the refund claim on new grounds without allowing the petitioner to respond. The matter was remanded to the Appellate Authority for fresh consideration after providing the petitioner an opportunity to file a representation and be heard on the aspects raised.
Facts
Sun Pharma inadvertently paid GST on inter-unit stock transfers, which did not qualify as 'supply' under Section 7 of the CGST Act. They sought a refund under Section 54, but the Assistant Commissioner rejected it. The Appellate Authority, while finding the initial rejection reason erroneous, dismissed the appeal by concluding that the excess tax was rectified and carried forward to subsequent returns.
Key Issues
Whether the Appellate Authority could reject a refund claim on grounds not raised in the Show Cause Notice without affording the petitioner an opportunity to be heard, and whether the inadvertently paid GST was actually adjusted in subsequent returns.
Sections Cited
Section 7, Section 54, Section 56, Section 107(11), Rule 92(1), Rule 92(3)
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF SIKKIM : GANGTOK (Civil Extra-ordinary Jurisdiction)
W.P.(C) No. 09 of 2020
Sun Pharma Laboratories Limited Plot No. 107-108, Namli Block, P.O. Ranipool, East Sikkim, Sikkim-737135
… Petitioner
Versus
Union of India Through the Secretary, Department of Revenue, Ministry of Finance, North Block, New Delhhi-110001
The Assistant Commissioner, Gangtok Division, Siliguri CGST and CX Commissionerate Indira By-Pass Road, Near District Court, Sichey, East Sikkim, Gangtok-737 101
The Joint Commissioner of CGST and Central Excise Siliguri CGST and Central Excise (Appeal) Commissionerate, Central Revenue Building, 4th Floor, Haren Mukherjee Road, Hakimpara, Siliguri-734001
The Commissioner, CGST and Central Excise, Siliguri Commissionerate Central Revenue Building, 4th Floor, Haren Mukherjee Road, Hakimpara, Siliguri-734001
… Respondents
BEFORE
HON’BLE MR. JUSTICE ARUP KUMAR GOSWAMI, CJ. HON’BLE MR. JUSTICE BHASKAR RAJ PRADHAN, J.
For the petitioner : Mr. Rahul Tangri, Ms. Gita Bista and Mr. Vivek Jain,
Advocates.
Fo
The judgment continues below.
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