Demand order not preceded by Form GST DRC-01 and Form GST DRC-01A to be set aside: HC

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Validity of Demand - Demand order was not preceded by Form GST DRC-01 and From GST DRC-01A - Held

Case Details: Shri Tyres v. State Tax Officer - [2021] 133 taxmann.com 319 (Madras)

Judiciary and Counsel Details

    • M. Sundar, J.
    • Adithya Reddy for the Petitioner. 
    • Ms. Amirta Dinakaran, Govt. Adv. for the Respondent.

Facts of the Case

The Competent Authority passed an order under section 73 on the assessee. The assessee filed writ petition and submitted that the procedure prescribed for making the impugned order had not been followed, i.e., impugned order was not preceded by Form GST DRC-01 and Form GST DRC-01A.

High Court Held

The Honorable High Court observed that requirements of issue of Form GST DRC-01 and Form GST DRC-01A have been statutorily ingrained in rule 142 of the CGST Rules, 2017. It was not a mere procedural requirement and it was clear that it would tantamount to trampling the rights of the assessee. Therefore, it was held that order would be set aside and Competent Authority shall commence proceedings afresh and complete the exercise by adhering the requirements more particularly requirements under rule 142.

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