Section 107 of the CGST Act, 2017 --- Appeal —- The petitioner challenged an Appeal order dated 19.04.2022, on the ground that the said order is, beyond jurisdiction inasmuch as it seeks to deny the petitioner refund of IGST paid in respect of services provided to an entity located overseas, on the ground that the petitioner is an ‘intermediary. The petitioner submits that denial of refund on this ground was not available to the Appellate Authority as this did not form a part of the show cause notice issued by the Adjudicating Authority. The petitioner contended that the Appellate Authority under Section 107 has the power to make such an inquiry as it considers necessary and pass such orders as it thinks just and proper including confirming, modifying or annulling the decision appealed against; however the power of modifying the order appealed against does not extend to setting up a new case altogether. The court observed that the petitioner was not given an opportunity to meet the case that it was not entitled to refund as the services provided by it was as an intermediary. Thus, the impugned order has been passed in violation of the principles of natural justice.

Held that:- The Hon’ble Court set aside impugned order and remanded the matter to the Appellate Authority to decide the petitioner’s appeal afresh, including the question as to whether the Appellate Authority has the jurisdiction to set up a new case against the assessee, which was not a subject matter of the SCN before the Adjudicating Authority.