GST Authorities must consider the taxpayer’s reply to a DRC-01A notice within the extended timeline.
Issue: Whether a notice in Form GST DRC-01 issued before the expiry of the response time for Form GST DRC-01A is valid, and whether the assessee should be granted an opportunity to respond to the DRC-01A notice.
Facts:
- The assessee challenged a GST DRC-01 notice issued before they had a chance to respond to a previous DRC-01A notice.
- The revenue agreed to allow the assessee more time to respond to the DRC-01A notice.
Decision:
- The court allowed the assessee one week to file a reply to the DRC-01A notice, including any jurisdictional challenges.
- The revenue was directed to consider the assessee’s reply and provide a reasonable opportunity for a hearing before making a decision.
- The court also acknowledged the assessee’s right to request copies of materials relied upon by the revenue authorities.
Key Takeaways:
- This case highlights the importance of following proper procedures and timelines in GST assessments.
- Issuing a DRC-01 notice before the expiry of the response time for a DRC-01A notice is premature and can be challenged by the assessee.
- The decision emphasizes the assessee’s right to a fair hearing and the opportunity to present their case before a final decision is made.
- The court’s recognition of the assessee’s right to access relevant materials ensures transparency and fairness in the assessment process.
HIGH COURT OF MADRAS
Tech Connect Retail (P.) Ltd.
v.
Commercial Tax Officer
Mohammed Shaffiq, J.
W.P. No.27592 of 2023
W.M.P. Nos.27045, 27047 and 27048 of 2023
W.M.P. Nos.27045, 27047 and 27048 of 2023
DECEMBER 4, 2024
Tarun Gulati, Senior Adv. and Karthik Sundaram for the Petitioner., V. Prashanth Kiran, Govt. Adv. and Sai Srujan Tayi, Senior Standing Counsel for the Respondent.
ORDER
1. The present writ petition is filed challenging the impugned notice dated 29.08.2023 in Form DRC-01 on the limited ground that the same came to be issued even before the time granted to the petitioner to respond to Form GSTR DRC-01A dated 23.08.2023 had expired.
2. The petitioner is engaged in the business of retail sale of various consumer goods, fashion apparels and electronic equipments etc. and is registered under the Goods and Services Tax Act, 2017. The petitioner for the relevant period viz., 2017-18 had filed the returns and paid appropriate taxes.
3. It is submitted by the learned counsel for the petitioner that an intimation notice in Form DRC-01A was issued on 23.08.2023, the petitioner ought to submit its reply by 07.09.2023. However, the impugned notice in Form DRC-01 was issued on 29.08.2023 even before the expiry of time specified therein.
4. The learned counsel for the Respondents would submit that the petitioner may respond to the DRC-01A within a period of one week from the date of receipt of a copy of this order and would thereafter proceed in accordance with law.
5. The learned counsel for the petitioner would submit that subsequent to the issue of DRC-01A the respondent has relied upon certain documents in particular audit slips and would request that copy of such materials relied by the concerned authority, may be furnished to the petitioner. It may be relevant to note that though the petitioner had challenged DRD-01 A, he would confine his prayer that the respondent may furnish copy of the materials sought to be relied upon by the respondent.
6. It is always open to the petitioner to make a request of the copy of the materials sought to be relied upon by the authority. If any request is made, the same would be considered in accordance with law. It is also open to the petitioner to raise all contentions in response to DRC-01A including jurisdictional issues. The Respondent authorities would consider such request/ reply if any filed and pass orders in accordance with law after affording the petitioner a reasonable opportunity of hearing.
7. The writ petition stands disposed of. No costs. Consequently, the connected miscellaneous petitions are closed.