DRC-01 ISSUED TWICE FOR SAME SCN, Goods and Services Tax - GST

[Vinod jadhav]

Respected Sir/Madam,

I am seekiing your expert opinion regarding the issuance of two DRC-01 forms for the same Show Cause Notice (SCN), which was issued in connection with audit observations.

1. First DRC-01: Issued on 31.05.2024, covering a total liability of ₹1,42,52,000. This DRC-01 pertains solely to the financial year 2021-22, while liabilities for the financial years 2017-18, 2018-19, 2019-20, and 2020-21 were omitted.:

a. Reply has already been submitted against the DRC-01.

2. Second DRC-01: Issued on 28.08.2024, this revised DRC-01 reflects a total liability of ₹3,55,00,000 and covers the financial years 2017-18 through 2021-22

In this situation, Which DRC-01 should be considered for filling a reply because currently two SCN reflect in the GST portal.

Moreover, if the second DRC-01 is to be considered, the extended period for the financial year 2017-18 appears to be time-barred.

Are there any other points I should consider when preparing my reply?

I would appreciate your advice.

Posts / Replies

[VENU K]

Sec 73 (3) empowers the officer to issue a statement of demand " where notice has been issued for any period under sub-section 1, the proper officer may serve a statement, containing the details of .......................................for such periods other than those covered under sub section 1.

But if it is a statement of Demand issued under Sec 73(3) they need to issue DRC 02 and not another DRC 01.

[KASTURI SETHI]

Both DRC-01s have to be adjudicated. You should also file reply to second DRC-01. You should fight on merits as well as on time-bar issue.

[KALLESHAMURTHY MURTHY]

Dear Sir, 

The SCN in the first instance was issued for one year 2021-22 but revised the SCN including other tax periods. It seems from the query that the revised SCN, though covered all the years (the issue of single SCN for multi-tax periods is not encourageable) year year-wise details were provided. It is not mentioned that the earlier SCN for 2020-21 is repeated or any additional observations are made or new observations are made. If only new observations for 2021-22 are made it cannot be called a revised SCN.

When there is a notice for time time-barred period, it may not be answered saying that it is time-barred. For other periods, year-wise reply may be filed. It may be noted that unnecessary litigating is burdensome. If there is tax liability payable to the government, it is better to be discharged rather going appeal after the order is passed with interest and penalty.  

This is my suggestion not to be construed as a legal opinion.