GST Notice Challenge Rejected: Proposal for Response Upheld, Recovery Notice Suspended for 10 Days HC dismissed writ petition challenging GST notice dated 07.09.2023. Court found notice as a proposal allowing response, not a final determination. ...
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GST Notice Challenge Rejected: Proposal for Response Upheld, Recovery Notice Suspended for 10 Days
HC dismissed writ petition challenging GST notice dated 07.09.2023. Court found notice as a proposal allowing response, not a final determination. Recovery notice dated 13.09.2023 was kept in abeyance for ten days. Petitioner granted liberty to challenge recovery notice through appropriate legal means and directed to respond to original GST notice.
Issues involved: Challenge to impugned notice dated 07.09.2023 issued under Section 73(5) of the CGST Act, 2017 and Rule 142(1A) of the CGST Rules, 2017. Police threat in the notice demanding payment. Invocation of Section 79 and issuance of recovery notice on 13.09.2023.
The writ petition challenged the impugned notice dated 07.09.2023 issued in Form GST DRC-01A under Section 73(5) of the CGST Act, 2017. The notice was related to an audit conducted for the Assessment Years 2017-2018 up to 2021-2022. The notice was deemed as a proposal, not a final determination, as it provided an opportunity for the petitioner to submit responses by a specified date.
The impugned notice contained a police threat demanding payment, which was considered unenforceable directly. The proper procedure required the Jurisdictional Assessing Officer to issue a notice under Section 79 after following the prescribed rules, such as Rule 88C of the CGST Rules, 2017. Rule 88C outlined the manner of dealing with differences in tax liability reported in statements of outward supplies and returns, emphasizing the steps to be taken by the registered person upon receiving an intimation of differential tax liability.
Subsequently, the second respondent invoked Section 79 and issued a recovery notice on 13.09.2023, seemingly in contravention of the procedure prescribed under Rule 88C of the CGST Rules, 2017. The court noted that the challenge to this recovery notice would need to be pursued separately. The court ruled that the proceedings initiated based on the impugned notice could not be stayed or interfered with, leading to the dismissal of the writ petition challenging the notice dated 07.09.2023.
The court granted liberty to the petitioner to challenge the recovery notice dated 13.09.2023 through appropriate legal means. Additionally, the petitioner was directed to respond to the impugned notice in Form GST DRC-01A. Considering the issuance of the notice under Section 79 on 13.09.2023, recovery proceedings under the recovery notice were ordered to be kept in abeyance for ten days to allow the petitioner to seek legal remedies.
In conclusion, the writ petition was dismissed with liberty granted to challenge the recovery notice, and no costs were awarded. The connected writ miscellaneous petitions were also closed as a result of the judgment.
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