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Form-GST-RFD-03, Goods and Services Tax - GST
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NO - No need to go for appeal on this stage.
Form-GST-RFD-03 is notice Asking for Additional Information/Clarification/Documents relating to your Refund Application.
After issuance of RFD-03, the applicant can rectify the deficiencies only by way of filing the fresh application; there is no other way out. Issuance of Notice for rejection of Refund claim RFD-08: After appropriate processing, if a part or whole of the refund is inadmissible the GST Officer will issue RFD-08.
Thanks for your information and the department agreed to the same.