Fair Hearing & Timely Adjudication: Bombay HC on IGST Credit Refund

Openwave India Private Ltd Vs Union of India (Bombay High Court)

Facts:

1. The petitioner filed a petition under Article 226 of the Constitution of India seeking relief.
2. The petition aimed to secure fair and reasonable opportunities for personal hearings and timely adjudication of appeals against various orders related to IGST credit refund.

Observations:

1. The petitioner entered into service agreements with Openwave Mobility, providing technical consultancy and software development services.
2. According to the Integrated Goods and Service Tax Act, 2017 (IGST Act), transactions qualified as export transactions.
3. The petitioner filed refund claims under Section 54 of the Central Goods and Services Tax Act for unutilised IGST credit on exports.
4. While some refund claims were sanctioned, others were rejected, leading to appeals filed before the Appellate Authority.
5. The petitioner repeatedly sought personal hearings and updates on appeal status, attending hearings as requested.
6. Despite attendance, the petitioner alleged that hearings were conducted by an assistant rather than the appointed authority, and no record of proceedings was provided.
7. Additional submissions were made by the petitioner, but no orders were received post-hearing.
8. Several appeals remained undecided, prompting the petitioner to seek intervention from the High Court.

Conclusion:

1. The High Court emphasized the principles of natural justice, mandating personal hearings before the Appellate Authority for fair decisions.
2. It highlighted the importance of timely adjudication, stressing that delays could prejudice the petitioner’s business rights.
3. The Court directed the Appellate Authority to pass orders within six weeks from notification, ensuring fairness and efficiency in the appeals process.
4. No costs were awarded in the case.

In Summary:

The Bombay High Court’s directive underscores the importance of procedural fairness and efficiency in the appeals process concerning IGST credit refunds. The ruling ensures that taxpayers receive due process and timely resolutions, contributing to a more transparent and accountable tax administration system.

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