Delhi HC directs to issue SCN if Duty Drawback and IGST Refund is to be Denied

The Delhi High Court directed tax authorities to issue a Show Cause Notice (SCN) if they intend to deny duty drawback and IGST refunds to an exporter. The case involved an exporter whose refund claims were denied without prior notice, which the court found to be a violation of procedural fairness. The court ruled that exporters must be given an opportunity to respond before any adverse action is taken. This decision underscores the importance of due process in tax administration, particularly in cases involving export-related refunds where large sums of money may be at stake.