Summary order in Form GST DRC-07 not containing reasons but uploaded on GSTN Portal to be set aside: HC

Case Details: Dauji Ispat (P.) Ltd. v. State of U.P. - [2022] 142 taxmann.com 470 (Allahabad)

Judiciary and Counsel Details

• • Naheed Ara Moonis & Saumitra Dayal Singh, JJ.
  • Shubham Agrawal for the Petitioner.
  • C.S.C., Krishna Ji Shukla & Vinod Kumar Pandey for the Respondent.

Facts of the Case

The summary order in Form GST DRC-07 was passed by Assistant Commissioner and uploaded on the GSTN Portal. The petitioner found that the order did not contain any reasons. The petitioner filed writ petition and contended that it can’t have right to challenge order in any forum unless served with complete copy of order containing reasons thereof.

High Court Held

The Honorable High Court noted that improvement/upgrade of GSTN is necessary since under Central Goods and Services Tax Act, 2017, service of notices and filing of replies primarily to be done through GSTN portal through electronic means. In the instant case, the order in Form GST DRC-07 as visible in GSTN Portal did not contain reasons. Thus, the order was wholly defective since it was lacking vital aspect namely reasons for conclusions drawn therein. Also, the Court directed Concerned Authority to enquire into exact reasons as to why and how incomplete copy of order impugned came to be uploaded on GSTN portal and take all remedial action to ensure that complete copies of orders were visible to assessees.