Goods and Services Tax Appellate Tribunal Thane remands 39 refund appeals citing lack of initial notice

The Goods and Services Tax Appellate Tribunal Thane issued a ruling stating that providing a post-decisional hearing at the appellate stage cannot remedy the initial absence of an RFD-08 notice. Consequently, the tribunal remanded 39 refund appeals belonging to a hundred percent export-oriented unit back for fresh adjudication. Adjudicating authorities under the Goods and Services Tax framework are legally mandated to issue a formal show-cause notice in Form RFD-08 before rejecting any tax refund application, ensuring the principles of natural justice are upheld.

Previously, adjudicating bodies occasionally bypassed issuing initial deficiency notices and attempted to cure procedural lapses by offering hearings during the appellate proceedings, a practice now invalidated by this tribunal order. Tax practitioners and chartered accountants representing export-oriented units must verify that all statutory notices were duly issued during original refund proceedings and challenge procedural shortcuts.

Professionals should track similar appellate rulings to safeguard client interests in pending refund disputes. Bottom line: strict adherence to statutory notice requirements is mandatory, and appellate hearings cannot substitute for original show-cause procedures.