GST DRC-01/DRC-01A optional; show-cause notice not required for revision under Section 22(4); Section 107 appeal preserved

HC held that issuance of Forms GST DRC-01 and DRC-01A is optional and not mandatory; a show-cause notice is not required for revision under Section 22(4) of the erstwhile TNVAT Act (unlike mandatory SCN for revisions under Section 27). The court declined to decide whether the discrepancies amounted to errors apparent on the face of record, preserved the petitioner's right to prefer a statutory appeal under Section 107 of the TN-GST Act, and dismissed the writ petition.

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Issues Involved:
1. Challenge to an order dated 22.06.2022 under Section 73 of TN-GST Act.
2. Non-issuance of Forms GST DRC-01 and GST DRC-01A.
3. Absence of a show cause notice (SCN) before the impugned order.
4. Filing of a rectification petition under Section 161 of TN-GST Act.

Analysis:

1. Challenge to the Order:
- The writ petitioner contested the order dated 22.06.2022 under Section 73 of TN-GST Act due to discrepancies in turnover and input mismatch noticed by the respondent. The petitioner raised three main points during the hearing.

2. Non-issuance of Forms GST DRC-01 and GST DRC-01A:
- The petitioner argued that the impugned order was not preceded by Forms GST DRC-01 and GST DRC-01A. However, the court noted an amendment to Rule 142 of TN-GST Rules, which made the submission of these forms optional rather than mandatory. Citing a previous case, the court clarified that the amendment altered the statutory requirement, rendering the argument invalid.

3. Absence of Show Cause Notice (SCN):
- The petitioner contended that no show cause notice was issued before the impugned order. The court referenced a previous case related to the TNVAT Act, highlighting that in certain revisions, including the one under consideration, issuing an SCN was not mandatory. The court noted that a personal hearing, although claimed by the respondent, was not a statutory requirement, thereby dismissing this argument.

4. Rectification Petition under Section 161 of TN-GST Act:
- The petitioner filed a rectification application under Section 161 of TN-GST Act, which allows rectification of errors apparent on the face of the record. The court examined the application and found that the issues raised did not qualify as errors apparent on the face of the record. The court emphasized the need for errors to be obvious and tangible without requiring inference, leaving the option open for the petitioner to file a statutory appeal under Section 107 of TN-GST Act.

In conclusion, the court dismissed the main writ petition while preserving the petitioner's rights to file a statutory appeal under Section 107 of TN-GST Act. The court clarified that the rectification application did not meet the criteria for rectifying errors apparent on the face of the record. The judgment highlighted the importance of statutory requirements and the need for errors to be clearly evident for rectification.

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