Denial of Right to File submission against intimation in Form GST DRC -01A amounts to Violation of Natural Justice Principle: Uttarakhand HC [Read Order]

The Uttarakhand High Court (HC) in its recent judgement, has held that denial of the right to file submission against intimation in Form GST DRC -01A amounts to violation of natural justice principle.

Ravi Enterprises, the Petitioner challenged the order dated 28.06.2022 passed by the Deputy Commissioner, State Tax under Section 73(9) of Uttarakhand GST/CGST Act, 2017.  It was contended that the petitioner was denied the opportunity to file a reply in respect of intimation under Section 73 given in Form GST DRC-01A, since, the intimation in Form GST DRC-01A was uploaded simultaneously with the show cause notice issued under Section 73(1) of the State/Central Goods and Services Tax Act.

Under section 73(9) of the CGST Act, 2017, the proper officer shall, after considering the representation, if any, made by a person chargeable with tax, determine the amount of tax, interest and a penalty equivalent to ten per cent. of tax or ten thousand rupees, whichever is higher, due from such person and issue an order.”

The Court observed that it was apparent that before issuing notice under Section 73, the person chargeable with tax is entitled to an intimation in Form GST DRC-01A so that he may respond to the intimation by filing his reply in part B of the said form.

The notice under Section 73(1) of the GST Act and the intimation in form GST DRC01A was uploaded together on 10.05.2022.  In form GST DRC-01A, it was mentioned that the petitioner may file his submission by 25.05.2022, while by the notice issued under Section 73(1), the petitioner was required to file his reply within 30 days. 

Justice Manoj Kumar Tiwari observed that the petitioner was denied a valuable right of filing his submission in response to the intimation in Form GST DRC-01A and quashed the impugned order dated 28.06.2022.

While allowing the writ petition, the Court remanded the matter back to the Competent Authority.  Further held that the “Petitioner may file his reply to the intimation in Form GST DRC-01A, within two weeks from today. The Competent Authority shall consider the reply, if filed within the stipulated time, within two weeks thereafter.”

To Read the full text of the Order CLICK HERE

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