The Madras High Court quashed the Section 73 GST ( Goods and Services Tax) demand order for not sending the SCN ( Show Cause Notice ) with the GSTR DRC-01. The court quashed the GST order.
Guru Cycle Mart, the assessee-petitioner, challenged the orders issued under Section 73 of the TNGST Act, 2017. The assessee argued that while intimation in DRC-01A and DRC-01 was issued, the DRC-01 did not include the required show cause notice.
The assessee had responded to the intimation notice. However, the demand was confirmed after hearings, without the issuance of the show cause notice along with DRC-01. This led the petitioner to approach the High court.
Also read: Income Tax Notice and Order Lacking Signature by Proper Officer cannot be Sustained: Telangana HC
Considering the submissions of the counsels, Mr.A.Satheesh Murugan and Mr.R.Suresh Kumar Additional Government Pleader, the bench of Justice C. Saravanan stated that the orders were issued in violation of the principles of natural justice.
Consequently, the court quashed the impugned orders, treating them as an addendum to the notice in GST DRC-01. The petitioner has been given 30 days from the receipt of the order to file a reply. The respondent is expected to complete the proceedings within three months thereafter. The writ petition was disposed of accordingly.
Also read: Order passed without Furnishing Materials Confirmed Demand: Madras HC remands VAT Matter
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