Concerning the Goods and Services Tax (GST) case, the Andhra Pradesh High Court, set aside the demand order stating that it is clearly a violation of principles of natural justice and directed the authorities to allow adequate time for response.
Sri Saidurga Automobiles,the petitioner/assessee, dealer in automobiles and automobiles parts received a show cause notice dated 02.06.2023 as certain inconsistencies were found in the returns. Initially the petitioner was given until July 9,2023 to respond. However, a notice was sent on June 3, 2023, requiring a reply by June 9, 2023. Later, a formal show-cause notice was issued on June 15, 2023, asking for replies by June 21, 2023.Afterwards, a demand order in Form GST DRC-07 was issued on July 4, 2023.
The petitioner contended that according to section 61 of CGST(Central Goods and Service Tax) Act before taking further action a 30 day period is required. The said period would end only on July 2,2023.However, actions were taken from June 3,2023. The petitioner also stated that the action taken by the authorities were a clear violation of principles of natural justice and sufficient time was not given to respond to the notice.
A division bench of Judge R Raghunandan Rao and Harinath.N, allowed the writ petition and set aside the demand order in Form GST DRC-07 ,dated July 4, 2023 stating that section 61 of CGST Act mandates a minimum period of 30 days before any further action can be taken by the authorities. The matter is remanded to the authorities and the petitioner must be given adequate time to respond according to the CGST Act and related rules. No costs are awarded.
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