Case Details: Kaushal Kailashchandra Dalal vs. Union of India (2026) 38 Centax 319 (Guj.)
Judiciary and Counsel Details
- A.S. Supehia & Pranav Trivedi, JJ.
- Shri Uchit N. Sheth, for the Petitioner.
- Shri Deepak N. Khanchandani & Ms Hetal G. Patel, for the Respondent.
Facts of the Case
The petitioner sought a refund of GST paid on the land portion of a composite transaction involving the transfer of land and a constructed bungalow, contending that tax had been collected and paid on the land component. A refund application was filed, which was initially subjected to a deficiency memo on the grounds of a lack of Aadhaar authentication, pursuant to which the petitioner verified details and re-filed the application. Thereafter, a show-cause notice was issued proposing rejection of the refund application, to which the petitioner submitted a request for adjournment within the stipulated time. Despite such a request, the jurisdictional officer proceeded to pass an ex parte order rejecting the refund application. Aggrieved by the rejection order passed without granting an adjournment, the petitioner approached the High Court. The matter was accordingly placed before the High Court.
High Court Held
The High Court held that pursuant to the show cause notice proposing rejection of the refund application, the petitioner had sought adjournment within the time prescribed under Section 75(5) read with Section 54 of CGST and Rule 92(3) of CGST Rules. The Court held that the jurisdictional officer ignored the said request and proceeded to pass an ex parte order, which was contrary to the mandatory provisions governing the grant of adjournment. It was held that the impugned order was passed de hors Section 75(5) of CGST and could not be sustained. Accordingly, the impugned order was quashed and set aside, and the matter was remanded for fresh consideration in accordance with the law.
