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2021 (7) TMI 1115 - Commissioner - GSTErroneous sanction of refund - export of services - SCN alleged that the period for which the refund claimed is May, 2018, whereas, the relevant payment was received only on 29-1-2019 which did not fall in the range of the relevant period - time limitation - HELD THAT:- In the case on hand the appellant has exported service through invoice dated 31-5-2018. The respondent had, after sanctioning provisional refund, chosen to allege that the refund sanctioned was erroneous and consequently the same is liable for recovery along with applicable interest and penalty under Section 73(1) of CGST Act, 2017 read with Section 54 of CGST Act, 2017. This allegation levelled in the notice to Show Cause (SCN) seamlessly culminated into the impugned Order, as the appellant neither replied to the notice nor appeared for the hearing, holding that the refund was erroneously sanctioned and therefore amount refunded is liable for recovery with applicable interest and penalty. Since the claim has been admittedly filed for the ‘period’ May, 2018, the ‘relevant period’ in this case has to be considered as May, 2018. In this regard it is found that the respondent on the logic that since the proceeds in foreign currency for the exports made in the month of May, 2018 has been received only during January, 2019, has come to the conclusion that no proceeds in foreign currency has been received in the month of May, 2018 and therefore determined the ‘turnover of zero rated supply of services’ as zero and thereby amount eligible for sanction is also zero. It is found from the SCN that the respondent has given fifteen days time for the appellant to reply to the SCN and also granted hearing on 27-1-2020. The respondent though seems to have apparently fulfilled the tenets of principles of natural justice; the fact that cannot be denied is that the impugned Order has not emerged as a culmination of a complete and robust judicial process - It is an established Law that an adverse Order seeking to impose a demand shall not be passed without considering the contra stand of the aggrieved. The respondent are directed to pass afresh a speaking Order on merits after scrupulously adhering to the principles of natural justice by giving an opportunity to the appellant - petition dismissed.
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