Demand order passed u/s 74(9) without issuing Form GST DRC-01A to be quashed: HC

Case Details: Skyline Automation Industries v. State of U.P. - [2023] 146 taxmann.com 159 (Allahabad)

Judiciary and Counsel Details

• • Rajesh Bindal & J.J. Munir, JJ.
  • Ashish Agrawal & Shubham Agrawal, Advs. for the Petitioner.
  • Ankur Agrawal, Standing Counsel for the Respondent.

Facts of the Case

A demand order was passed under section 74(9) of Central Goods and Services Tax Act, 2017 against the petitioner. It filed writ petition against the order and submitted that no show cause notice in Part-A of FORM GST DRC-01A as provided for under Rule 142(1A) of Central Goods and Services Tax Rules, 2017 was issued.

High Court Held

The Honorable high Court observed that for initiation of proceedings, a notice as provided for under Rule 142(1A) of the Rules in Part A of FORM GST DRC-01A must be issued, which would have communicated details of any tax, interest and penalties as ascertained by officer. However, in the instant case, FORM GST DRC-01A was not issued and any subsequent reminder would not cure inherent defect in proceedings initiated against the petitioner. Therefore, it was held that the impugned order was liable to be quashed with liberty to initiate fresh proceedings against petitioner in accordance with law.