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2024 (10) TMI 129 - HC - GSTViolation of principles of natural justice - Challenge to summary order issued under GST Act without a detailed order - Attachment of the bank accounts - HELD THAT - On perusal of the summary order dated 06.01.2020 at Annexure A to the petition it only says the order No. b612, tax period order dated 06.01.2020, financial year 2019/20 and tax period 01.07.2017 to 31.03.2019 and issues involved is shown as DRC-1 and description of goods is HSN 72042190 and description shown is scrap and the details of demand is also mentioned having total of Rs. 2,16,14,681/-. On perusal of the above summary of the order, again a query was raised to learned Assistant Government Pleader Mr. Dave to make a statement at bar that there is no detail order in existence on the record of the respondents which is passed on 06.01.2020. Therefore, in absence of any order, for which, the summary of the order was issued on 25.01.2020, the same cannot be sustained and accordingly, the summary of the order dated 25.01.2020 in FORM GST DRC-01 is hereby quashed and set aside and consequent action for the recovery on the basis of such summary of the order in absence of any detailed order passed under any of the provisions of the GST Act is also hereby quashed and set aside including the attachment of any of the bank accounts of the petitioner. The respondents are directed to pass an appropriate order for lifting the attachment of the bank accounts of the petitioner forthwith - the petition is disposed of.
Issues:
Challenge to summary order issued under GST Act without a detailed order, Quashing of FORM GST DRC-07 and FORM GST DRC-22, Lack of opportunity for personal hearing, Recovery action based on summary order, Validity of summary order without a detailed order. Analysis: The petition under Article 226 of the Constitution of India sought relief by challenging the FORM GST DRC-07 and FORM GST DRC-22, requesting the quashing of orders and staying their implementation. The respondent conducted a raid on the petitioner's business premises, leading to the issuance of show cause notices for wrong Input Tax Credit. The petitioners alleged lack of opportunity for a personal hearing before the issuance of orders. The petition primarily contested the validity of the summary orders issued without detailed orders under the GST Act. The petitioner argued that the summary orders lacked detailed information and were issued without any formal order under Section 74 of the GST Act. The respondent failed to provide a detailed order, only issuing a summary under Rule 142(5) of the Gujarat Goods and Service Tax Rules, 2017. The court noted that a summary order without a detailed order holds no legal value and is merely a record of outstanding demands under Section 74 of the GST Act. Upon examination of the summary order, the court found discrepancies and ruled that in the absence of a formal order, the summary order could not be upheld. Consequently, the court quashed the summary order and directed the respondents to lift the attachment of the petitioner's bank accounts. The judgment emphasized the importance of a detailed order under the GST Act before initiating recovery actions based on summary orders. In conclusion, the court disposed of the petition, providing directions to set aside the summary order and associated recovery actions. The judgment highlighted the necessity of a detailed order under the GST Act for the validity of any subsequent summary orders and recovery actions. The petition was resolved in favor of the petitioner, emphasizing the fundamental requirement of due process and detailed orders in administrative proceedings under the GST Act.
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