Section 16 of the IGST Act, 2017 — Refund –— The applicant prayed for quashing the order dated 17.2.2021, whereby, the refund claim of the Petitioner has been partially rejected. The applicant exported without payment of tax during the period from July 2018 to March 2019. For the month of June 2019, the applicant exported services on payment of tax. The applicant filed refund application for the month of June 2019. Although provisional refund of partial amount was granted and remaining refund was rejected stating as Inadmissible. The applicant was told by the respondent that while the refund cannot be granted, he would be entitled to the re-credit in the electronic credit ledger of the amount of refund rejected. But the same was not done. However, the respondent orally informed that the GST portal was not allowing the re-credit. The counsel for the applicant submitted that the applicant was not issued any SCN nor any opportunity of hearing was given before rejection of the refund, leading to an erroneous order being passed. The court observed that on one hand the refund has been partially rejected and on the other hand such partially rejected amount is not even being re-credited into the electronic credit ledger. Further, the order partially rejecting the refund was passed without issuing any SCN and is also a nonspeaking and cryptic order.  

Held that:- The Hon’ble High Court quashed the impugned order to the extent the refund application of the applicant has been rejected and remanded the matter to the adjudicating authority for deciding afresh the refund application. The entire exercise shall be completed and the order adjudicating the refund claim of the applicant may be passed within a period of four weeks.