Ozone Pharmaceutical LTD (Unit Ii) (Earlier Ozone Ayurvedics) vs. Union Of INDIA And 2 Ors
Held
The Court upheld the sanction of the Rs. 88,54,980/- refund but set aside its appropriation and the demand for the balance amount. It held that while the liability for the 50% PLA refund might arise from the Supreme Court's final judgment, the specific recoverable amount, especially the interest component, had not been determined through a proper adjudication process with notice and opportunity of hearing to the petitioner.
Facts
The petitioner was sanctioned a refund of Rs. 88,54,980/- as per a CESTAT order that had attained finality. However, the Assistant Commissioner appropriated this refund towards an alleged recoverable amount of Rs. 1,12,91,641/-, comprising principal and interest, related to a 50% PLA refund previously granted under an interim Supreme Court order, and directed the petitioner to pay the balance.
Key Issues
Whether the tax authority can appropriate a sanctioned refund against an alleged liability, particularly an interest component, without a prior independent adjudication, notice, and opportunity of hearing to the assessee, even if the underlying principal liability stems from a Supreme Court judgment.
Sections Cited
Section 153 of the Finance Act, 2003
AI-generated summary — verify with the full judgment below
Page No.# 1/10 GAHC010065812026
2026:GAU-AS:12611
THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH) Case No. : WP(C)/2162/2026 OZONE PHARMACEUTICAL LTD (UNIT II) (EARLIER OZONE AYURVEDICS) A COMPANY REGISTERED UNDER THE PROVISIONS OF THE COMPANIES ACT,, 1956 AND HAVING ITS OFFICE AND FACTORY AT EXPORT PROMOTION INDUSTRIAL PARK (EPIP), AMINGAON,, NORTH GUWAHATI CIRCLE, DIST- KAMRUPM, ASSAM REPRESENTED BY SRI BEDANTA NATH AGED ABOUT 50 YEARS VERSUS UNION OF INDIA AND 2 ORS REPRESENTED BY THE COMMISSIONER AND SECRETARY TO THE GOVERNMENT OF INDIA, MINISTRY OF INDUSTRIES AND COMMERCE, DEPARTMENT OF INDUSTRIAL POLICY AND PROMOTION, UDYOG BHAWAN, NEW DELHI 2:THE PRINCIPAL COMMISSIONER CENTRAL GOODS AND SERVICES TAX GST BHAWAN KEDAR ROAD MACHKOWA GUWAHATI- 781001 3:THE ASSISTANT COMMISSIONER GOODS AND SERVCES TAX GST BHAWAN GUWAHATI DIVISION- 1 KEDAR ROAD MACHKOWA GUWAHATI-78100 Advocate for the Petitioner : MS. M L GOPE, MS. N HAWELIA,MR S K SAHA,MS S SARKAR Advocate for the Respondent : DY.S.G.I., SC, CGST
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