Section 54 of the CGST Act, 2017 —– Refund —- The petitioner challenged order dated 13.7.2021, whereby, order passed under section 54(5) read with section 56 , the claim of refund of the petitioner came to be treated as inadmissible, on the ground as “Wrong ITC Claim”. The court observed that the claim was rejected on the ground that refund was inadmissible because of wrong ITC claim. It turns out that the new ground is relied on by the authority. It rejected claim of refund which was never mentioned in the show cause notice.

Held that:- The Hon’ble High Court quashed the impugned order and directed that the refund claim shall be reconsidered by the authority concerned afresh after following due procedure in law.