GST Assessment Order Quashed: DIN Number Mandatory

Summary in Key Points:

Issue: Was the assessment order valid when it lacked a Document Identification Number (DIN)?
Facts: The petitioner challenged the assessment order, arguing, among other things, that it did not contain a DIN.
Decision: Citing Supreme Court judgments and the CBIC circular, the court held that the absence of a DIN in the impugned order (even if uploaded on the portal) necessitates setting aside the order. The writ petition was allowed, quashing the assessment proceedings, with liberty to the revenue to conduct a fresh assessment after assigning a DIN to the order.

Important Note: This decision reinforces the mandatory nature of including a DIN on assessment orders, as per Supreme Court rulings and the CBIC circular. The absence of a DIN renders the order invalid, even if it is uploaded on the GST portal. This underscores the importance of adhering to this procedural requirement for the validity of assessment orders. It safeguards against potential misuse and ensures transparency and accountability in tax administration.

HIGH COURT OF ANDHRA PRADESH

Sri Rajini Gold

Assistant Commissioner of Tax

R. Raghunandan Rao and MAHESWARA RAO KUNCHEAM, JJ.

WRIT PETITION NO: 24121 of 2024

DECEMBER 11, 2024

Gopisetty Nagaraju for the Petitioner.

ORDER

R. Raghunandan Rao, J.- The petitioner was served with an assessment order bearing Rc.No.ZD3711230023621/2017-18, ZD371123002369N/2018-19, ZD371123002375U/2019-20, ZD371123002386R/2020-21, dated 06.11.2023 passed by the 1^st respondent, under the Goods and Service Tax Act, 2017 [for short “the GST Act”] for the period from 2017-18, 2018-19, 2019-20 and 2020-21. This assessment order of the 1^st respondent has been challenged by the petitioner in this writ petition.

2. This assessment order, in Form GST DRC-07, is challenged by the petitioner, on various grounds, including the ground that the said proceedings did not contain a DIN number.

3. Learned Government Pleader for Commercial Tax, on instructions, submits that there is no DIN number on the impugned assessment order.

4. The question of the effect of non-inclusion of DIN number on proceedings, under the G.S.T. Act, came to be considered by the Hon’ble Supreme Court in the case of Pradeep Goyal v. Union of India & Ors 2022 (63) G.S.T.L. 286 (SC). The Hon’ble Supreme Court, after noticing the provisions of the Act and the circular issued by the Central Board of Indirect Taxes and Customs (herein referred to as “C.B.I.C.”), had held that an order, which does not contain a DIN number would be non-est and invalid.

5. A Division Bench of this Court in the case of M/s. Cluster Enterprises v. The Deputy Assistant Commissioner (ST)- 2, Kadapa 2024 (88) G.S.T.L. 179 (A.P.), on the basis of the circular, dated 23.12.2019, bearing No.128/47/2019-GST, issued by the C.B.I.C., had held that non-mention of a DIN number would mitigate against the validity of such proceedings. Another Division Bench of this Court in the case of Sai Manikanta Electrical Contractors v. The Deputy Commissioner, Special Circle, Visakhapatnam 2024 (88) G.S.T.L. 303 (A.P.), had also held that non-mention of a DIN number would require the order to be set aside.

6. In view of the aforesaid judgments and the circular issued by the C.B.I.C., the non-mention of a DIN number in the order, which was uploaded in the portal, requires the impugned order to be set aside.

7. Accordingly, this Writ Petition is allowed setting aside the impugned proceedings, bearing Rc.No.ZD3711230023621/2017-18, ZD371123002369N/2018-19, ZD371123002375U/2019-20, ZD371123002386R/2020-21, dated 06.11.2023, issued by the 1^st respondent, with liberty to the 1^st respondent to conduct fresh assessment, after giving notice to the petitioner and assigning a DIN number to the said order. Needless to say, the period from the date of filing of the Writ Petition to the date of disposal of the Writ Petition shall be excluded for the purpose of calculating the limitation available for passing the assessment order. There shall be no order as to costs.

As a sequel, pending miscellaneous applications, if any, shall stand closed.