GST Recovery Orders Passed due to Non- Reply to DRC-01: Madras HC Directs to file Consolidated Reply on 10% Deposit from E-Cash Register [Read Order]

The Madras High Court has allowed petitioner to file a consolidated reply to the GST ( Goods and Services Tax ) recovery notices issued for multiple assessment years on 10% deposit from Electronic Cash Register where DRC - 07 orders were passed due to non-reply.

A batch of petitions were filed by M/s. V.M.N.N Blue Metals, challenging DRC-07 orders for multiple assessment years.

The petitioner-assessee contended that although DRC-01 notices had been issued, the replies could not be filed. It submitted before the court that it may be given one opportunity to retrieve its grievance and therefore seeks for a remand.

The State opposed the petitions, asserting that the assessee had an alternate remedy under Section 107 of the GST Act.

Justice V. Lakshminarayan noted that the court has dealt with similar circumstances. Considering the decisions of the earlier cases, the bench was allowed to file a consolidated reply on 10% deposit of the disputed tax amount in cash from the Electronic Cash Register within 30 days from receipt of the order.

Also, the assessee was required to file a consolidated reply to all the relevant DRC-01 notices, along with necessary documents, within the same time frame, treating the impugned DRC-07 orders as an addendum to such replies.

The court also clarified that if the petitioner fails to fulfill the conditions, then the department was granted with the powers to revive the recovery proceedings.

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates