Order date: 12 Aug 2025 
Parties: M/s Neelam Rubbers v. Chief Commissioner of CT & GST, Odisha

Facts - 

• The petitioner, engaged in supplies to an SEZ, claimed refund for April 2018–March 2019 under Section 16 and 54 of the GST Act. A show cause notice was issued on 23.02.2023 requiring reply by 26.02.2023. 
• However, due to treatment for carcinoma from 17.02.2023 to 10.05.2023, the petitioner could not respond, and the application was rejected ex parte on 25.02.2023.

Issue -

• Whether an ex parte order rejecting refund can be sustained when the taxpayer was prevented from replying due to serious medical illness?

Order -

• The Court noted that medical records established the petitioner’s inability to respond in time. It held that denial of opportunity in such circumstances prejudiced the petitioner. 
• On the conceded position as aforesaid, this Court perceiving prejudice caused to the petitioner for not being granted opportunity to present its case before the authority concerned due to health condition, cannot, therefore, sustain the order dated 25th February, 2023. 
• The impugned order was set aside, and the matter remanded with directions: the petitioner to appear before the authority by 26.08.2025 with necessary documents; verification to be completed, and a fresh order to be passed by 15.09.2025 after granting due opportunity.