Refund Recovery Proceedings Invalid Without Review of Sanction Order: CESTAT

The CESTAT held that refund recovery proceedings initiated without a proper review of the sanction order are invalid. The tribunal emphasized the necessity of a thorough review process to ensure the legality and correctness of the initial sanction order before any recovery action is taken. The CESTAT found that the revenue authorities had failed to demonstrate that such a review was conducted, rendering the subsequent recovery proceedings unsustainable. This ruling underscores the importance of adhering to due process and ensuring accountability in tax administration, safeguarding the rights of taxpayers against arbitrary recovery measures.