Summary Order Issued Without Detailed Assessment Order Under Sec. 73 or 74 is Void Ab Initio | HC

Case Details: Messrs Kisan Mouldings Ltd. v. Union of India - [2024] 167 taxmann.com 502 (Gujarat)

Judiciary and Counsel Details

• Bhargav D. Karia & Niral R. Mehta, JJ.
• Paresh M. Dave, for the Petitioner.
• Deepak N. Khanchandani & Raj Tanna, AGP for the Respondent.

Facts of the Case

In the present case, the petitioner filed a writ petition before the Hon’ble High Court of Gujarat and challenged the summary order in Form GST DRC-07. The petitioner submitted that GST Department passed a summary order but the petitioner was not provided with any detailed order u/s 73 or 74 of the CGST Act, 2017. It was also pointed out that on the basis of such summary of order, the GST department initiated the recovery proceedings.

High Court Held

The High Court noted that the GST authorities confirmed the absence of any detailed order on record corresponding to the impugned summary order. The High Court held that a summary order issued without accompanying detailed assessment order u/s 73 or 74 of the GST Act is void ab initio. Further, the High Court quashed the impugned summary order and set it aside. The Revenue was also directed to lift the attachment on the petitioner’s bank accounts.