In a recent case, the Gujarat High Court held that issuance of Pre’ Consultation notice in Form DRC 01A is not compulsory from 15 th October, 2020. The court viewed that though the requirement of issuance of the pre- consultation notice in Form-DRC-01A is not compulsory as per the amendment brought on the statute with effect from 15th October, 2020, the word ”may” is required to be read as “shall” otherwise, Subsection (5) of Section 74 of the Act would become redundant.
Avinash Poddar appeared for the petitioner, Amit Traders and Hetal G.Patel appeared for the respondents.
Uncover Section 50C Best Practices: Expert-Led Course, Click here
Avinash Poddar submitted that the impugned show-cause cum demand notice was issued in contrary to the provision of Section 74(5) of the CGST/GGST Act, 2017 (“the Act”), as the respondent authorities have not issued any notice in Form GST DRC- 01A as contemplated under Rule 42(1A) of the CGST/GGST Rules, 2017.
It was submitted that though the requirement of issuance of the pre- consultation notice in Form-DRC-01A is not compulsory as per the amendment brought on the statute with effect from 15th October, 2020, the word ”may” is required to be read as “shall” otherwise, Subsection (5) of Section 74 of the Act would become redundant.
Uncover Section 50C Best Practices: Expert-Led Course, Click here
Considering the above submissions, the court comprising Justice Bhargav D. Karia And Justice Niral R. Mehta issued Notice returnable on 16th October, 2024. It was further held that “by way of ad-interim relief, the petitioners shall continue to cooperate in the adjudication process of the impugned show- cause notice, however the respondents shall not pass the final order during the pendency of this petition.”
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
