Section 54 of the CGST Act, 2017 --- Refund —- The petitioner challenged an Appeal order dated 26.11.2021, whereby the petitioner’s appeal against the order dated 30.07.2020 (Refund Rejection Order) was rejected. The petitioner sought refund on 29.05.2020 of the IGST paid on the export of services. The court observed that there is no dispute that the petitioner had discharged his tax liability in relation to zero rated supplies. There was no cavil with regard to the petitioner’s entitlement to refund. The respondent had rejected the petitioner’s claim by referring to Sub-clause (D) of Rule 89(4) on the ground that the turnover reflected for the month of October, 2018 ought to be considered as the turnover for the month of November, 2018 when the remittances were received.  The Appellate Authority failed to address the said contention and proceeded to mechanically reject the petitioner’s appeal on, ex facie, erroneous assumption that the petitioner was seeking refund of accumulated ITC.

Held that:- The Hon’ble Court  set aside the order and remanded the appeal to the Appellate Authority to decide afresh in view of the observations made in this order.