HC Directed Adjudicating Authority to Pass Fresh Orders after Uploading SCN on Website

Case Details: New Hanumat Marbles v. State of Punjab - [2023] 149 taxmann.com 82 (Punjab & Haryana)

Judiciary and Counsel Details

• • Ms Ritu Bahri & Mrs Manisha Batra, JJ.
  • Sandeep Goyal, Ms Nazuk Singhal & Ishaan Loomba, Advs. for the Petitioner.
  • Saurabh Kapoor, Addl. A.G., Punjab, for the Respondent.

Facts of the Case

The search was conducted in the premises of the petitioner and some documents were seized from the office. Thereafter, the department passed order in Form GST DRC-07. The petitioner field writ petition against the order and the grievance of the petitioner was that before passing final order on assessment, Rule 142(1) of the CGST Act is mandatory to be followed and GST DRC-01 has to be uploaded electronically on the website.

High Court Held

The Honorable High Court noted that in the instant case, ex-parte adjudication/assessment order was passed under section 74(5) of Central Goods and Services Tax Act, 2017 without uploading summary of show cause notice in Form GST DRC-01 on Department’s website. The Court also noted that as per Rule 142(1) of the CGST Rules, 2017, the only mode prescribed for communicating to the show cause notice/order is by way of uploading the same on the website of the revenue.

Therefore, it was held that the detailed order passed under section 74(5) and summary thereof in Form GST DRC-07 without uploading show cause notice on Department’s website was not sustainable and hence it was liable to be quashed. The Court also directed adjudicating authority to pass fresh orders after issuing show cause notice in terms of Rule 142(1) and affording opportunity of hearing to petitioner.