2. Ms. Jyotsna Rewal Dua, learned Senior Advocate invites our attention to the following averments made in the reply/affidavit dated 27.6.2018, filed by the Assistant Commissioner, Central Excise Division Baddi, District Solan, HP and the Commissioner Central Tax, CGST Commissionerate, Shimla (Respondents No. 3 and 4).

“8. That in reply to the contents of this para it is submitted that the contention of the petitioner that department is holding back their refund is not correct. It is humbly submitted that the Budgetary support refund is being processed and disbursed to the applicants as per funds allocated to this office of the replying respondents by the DIPP It is mentioned that DIPP has only once allocated limited funds to the department for disbursal that too in the last week of March 2018 and accordingly amount has been disbursed against only a few of the refund applications filed with the department. Due to non-allocation of sufficient funds by the DIPP to the department, applications for budgetary support refunds including application filed by the petitioner are pending with department. Now DIPP has released additional funds for disbursal of budgetary support refunds which is under process of allocation to various divisions.

Accordingly, application filed by the petitioner pending with the department, shall be taken up for sanction and disbursal in terms of interim order dated 6.11.2017 of Hon’ble High Court subject to the outcome of the CWP No. 2505 of 2017.”

3. At this stage, Mr. Rajiv Jiwan, learned counsel for respondents No. 3 and 4 states that petitioner’s prayer for quashing the impugned order dated 26.9.2017, (Annexure P15), passed by the Assistant Commissioner, Central Excise Division Baddi, District Solan, HP (respondent No.3) for the reason that principles of natural justice stood violated, can be set aside with further direction to the said authority to decide the matter afresh, after affording opportunity of hearing to all concerned.

4. This statement is being made in the peculiar facts and circumstances of the case, for the authority below has to adjudicate the factual matrix and the parties, if so aggrieved, can resort to the appropriate statutory remedy.

5. Ms. Jyotsna Rewal Dua, learned Senior Advocate has no objection the said proposition, subject to the appropriate authority deciding the matter, in the light of the averments made in para 8 of the reply/affidavit, reproduced supra.

6. Under these circumstances, as mutually agreed, present petition is disposed in the following terms.

(a) For the reason that the impugned order dated 26.9.2017, (Annexure P15), passed by the Assistant Commissioner, Central Excise Division Baddi, Distrit Solan, HP (respondent No.3), is passed without adhering to the principles of natural justice, is quashed and set aside.

(b) The appropriate authority shall pass fresh order, after affording opportunity of hearing to all concerned.

(c) Liberty is reserved to each one of the parties to place additional material before the appropriate authority, if so required and desired.

(d) The appropriate authority shall also decide the issue of payment/refund of Goods and Services Tax (GST) up to date.

(e) Till passing of the order by the appropriate authority, no coercive action shall be taken against the petitioner.

5. It is clarified that we have not expressed any opinion on the merit of the case.  

6. With the aforesaid observations, present petition stands disposed of, on the aforesaid mutually agreed terms, so also pending application (s), if any. Copy dasti.