GSTAT Thane: Absence of RFD-08 notice cannot be cured by post-decisional appellate hearing; remands 39 refund appeals

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Published 6 November 2026

Case: Not stated in source
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Source: SCC Times

Bottom Line Up Front (BLUF)

The Goods and Services Tax Appellate Tribunal, Thane, held that an adjudicating authority cannot reject a refund claim, wholly or partly, without issuing a Form GST RFD-08 notice and granting a hearing. The Tribunal clarified that a post-decisional hearing at the appellate stage cannot cure this fundamental omission, leading to the remand of 39 refund appeals.

Ratio Decidendi · Legal Principle Established

The adjudicating authority lacks jurisdiction to reject a refund claim, in whole or in part, without first issuing a notice in Form GST RFD-08 and providing an opportunity for a hearing. The absence of such a notice and hearing at the original stage cannot be remedied by a post-decisional hearing at the appellate stage.

Practice & Procedural Impact for Advocates

Advocates should ensure that adjudicating authorities strictly adhere to the procedural requirement of issuing Form GST RFD-08 notices before rejecting refund claims. Litigants whose refund claims are rejected without an RFD-08 notice should challenge such rejections on jurisdictional grounds, as appellate hearings cannot rectify this procedural flaw.

Key Legal Takeaways

1Issuance of Form GST RFD-08 notice is mandatory before rejecting a refund claim.
2Adjudicating authority has no discretion to reject a refund without this notice and a hearing.
3Appellate stage hearing cannot cure the absence of an RFD-08 notice at the original stage.

The Legal Issue The core legal issue before the Goods and Services Tax Appellate Tribunal (GSTAT), Thane, was whether an adjudicating authority can reject a refund claim, either wholly or partly, without first issuing a notice in Form GST RFD-08 and providing an opportunity for a hearing. A related question was whether such a procedural omission at the original adjudicating stage could be cured by a post-decisional hearing at the appellate stage.

Court's Reasoning The GSTAT, Thane, unequivocally held that the adjudicating authority is divested of jurisdiction or discretion to reject a refund claim, whether in full or in part, unless it first issues a notice in Form GST RFD-08 and grants the claimant a proper hearing. The Tribunal emphasized that this procedural requirement is fundamental. Furthermore, the GSTAT clarified that a post-decisional hearing conducted at the appellate stage cannot rectify or cure the initial absence of the mandatory RFD-08 notice and hearing at the adjudicating stage. The Tribunal's reasoning underscores the importance of due process and adherence to prescribed procedures in refund claim adjudication.

What Follows Following this determination, the Goods and Services Tax Appellate Tribunal, Thane, remanded 39 refund appeals pertaining to 100 per cent Export Oriented Units (EOU) back to the adjudicating authority. This remand implies that the adjudicating authority must now re-examine these refund claims, ensuring that the proper procedure, including the issuance of Form GST RFD-08 notices and granting hearings, is strictly followed before making any decision on the refund claims.