Andhra Pradesh HC sets aside GST SCN issued without Mentioning DIN Number [Read Order]

The Andhra Pradesh High Court sets aside Goods and Service Tax (GST) show cause notice (SCN) issued without mentioning DIN number.

Avani Tech Soulutions Private Limited, the petitioner filed the petition to issue order declaring the action of the 1st Respondent in passing the Rejection of refund Order, dated 29.03.2023, which is passed even before the date of personal hearing on 31.03.2023 provided in the show cause notice dated 17.03.2023 and without waiting the time of fifteen days granted for filing of reply which expires on 01.04.2023 and the show cause notice and Order passed is without DIN, as illegal, bias, frivolous, and in violation of Principles of Natural Justice and contrary to Article 14 of the Constitution of India.

The action of the 2nd Respondent in rejecting the appeal on limitation point, after numbering the appeal and kept one year for adjudication of the appeal hearing and without issuing any notice for admission and even during the personal hearing of the appeal on merits also not questing the limitation period, but only while passing the order the 2nd Respondent concluded on limitation issue even without referring to the Notification No.53/2023-Central tax dated 02.11.2023 issued by the 4th Respondent duly extending the statutory limitation period for filing of an appeal against the orders passed by the officer on or before 31.03.2023, and consequently set-aside the appeal order dated 31.01.2025 as null and void, and pass.

The petitioner was served with the show-cause notice, dated 17.03.2023, passed by the 1st respondent, under the Goods and Service Tax Act, 2017 [“the GST Act”]. The show-cause notice, dated 17.03.2023, is challenged by the petitioner, on various grounds, including the ground that the said proceeding did not contain a DIN number.

Smt. Santhi Chandra, Senior Standing Counsel for the respondents, on instructions, submitted that there is no DIN number on the impugned show-cause notice. The question of the effect of non-inclusion of DIN number on proceedings, under the G.S.T. Act, came to be considered by the Supreme Court in the case of Pradeep Goyal Vs. Union of India & Ors .

The Supreme Court, after noticing the provisions of the Act and the circular issued by the Central Board of Indirect Taxes and Customs ( “C.B.I.C.”), had held that an order, which does not contain a DIN number would be non-est and invalid.

A Division Bench of the Court in the case of M/s. Cluster Enterprises Vs. The Deputy Assistant Commissioner (ST)-2, Kadapa ,had held that non-mention of a DIN number would mitigate against the validity of such proceedings.

In view of the aforesaid judgments and the circular issued by the C.B.I.C., the bench of Justice R Raghunandan Rao and Justice T.C.D.Sekhar set aside the show cause notice in which DIN number was not-mentioned before uploading in the portal.

The Writ Petition is disposed of setting aside the show-cause notice with liberty to the 1st respondent to conduct fresh assessment, after giving notice to the petitioner and assigning a DIN number to the said show-cause notice.

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