2023 (10) TMI 284 - HC - GST

Valid SCN or not - challenge to the Impugned Notice in Form GST DRC-01 is that it is not a Show Cause Notice but an order as the petitioner has been asked to pay the tax and penalty - HELD THAT - The Impugned Communication in Form GST DRC-01 dated 21.07.2023 perused. Rule 142(1) of TNGST Rule 2017 contemplates issuance of a notice in Section 73(1), 74(1) or 76(2) in Form GST DRC 01. It also contemplates issuance of a statement under sub-section (3) to Section 73 and 74 and a summary thereof has to be electronically transmitted in Form GST DRC 02, specifying therein the details of the amount payable. A reading of the Impugned Notice dated 21.07.2023 seems to indicate the respondent has asked the petitioner to pay the amount directly instead of calling upon the petitioner to show cause as to how the amounts specified therein should not be demanded from the petitioner. Thus, there is a minor mistake in the issuance of the Impugned Order as it seems to give an impression that it is an order of the respondent. The Court is inclined to dispose this writ petition by directing the respondent to issue a corrigendum to the Impugned Notice in Form GST DRC-01 dated 21.07.2023 calling upon the petitioner to Show Cause as to how the amounts should not be demanded in accordance with Rule 142(1) of TNGST Rules, 2017 within a period of thirty (30) days from the date of receipt of a copy of this order - Petition disposed off.

Summary

Issues Involved:
The challenge to the Impugned Notice in Form GST DRC-01 as not being a Show Cause Notice but an order, Contrary to Rule 142(1) of TNGST Rules, 2017.

The petitioner challenged the Impugned Communication in Form GST DRC-01 dated 21.07.2023, issued by the respondent, on the grounds that it was not a Show Cause Notice but an order requiring the petitioner to pay tax and penalty. The petitioner had previously received a notice in Form GST DRC-01A dated 30.12.2022, to which a reply was filed on 16.01.2023. The Impugned Order was argued to be contrary to Rule 142(1) of the TNGST Rules, 2017, which necessitates the issuance of a Show Cause Notice alongside the notice in Form GST DRC-01. The respondent contended that the Impugned Notice was indeed a Show Cause Notice issued under Rule 142(1) of TNGST Rules, 2017, attributing any confusion to a typographical error in the preamble. After considering the arguments, the Court found that the Impugned Notice seemed to directly demand payment without providing an opportunity for the petitioner to show cause. Consequently, the Court directed the respondent to issue a corrigendum to the Impugned Notice, calling upon the petitioner to show cause within thirty days as per Rule 142(1) of TNGST Rules, 2017, with final orders to be passed within six weeks thereafter. The writ petition was disposed of with these directions, and no costs were awarded.