Mandatory pre-assessment DRC-01A notice under GST rules made missing notice fatal to the assessment proceedings

Assessment proceedings under the CGST Rules were treated as invalid where no prior notice in Form GST DRC-01A was issued under Rule 142(1A). For the relevant period, the unamended rule required such notice before assessment, and the later amendment of 15.10.2020, which made the requirement directory, did not apply retrospectively. The absence of the prescribed notice was held to go to the root of the proceedings, so the assessment orders were set aside and the matters remanded for fresh proceedings after issuing notice and giving an opportunity of hearing.

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Issues: Whether an assessment order passed without prior issuance of notice in Form GST DRC-01A under Rule 142(1A) of the Central Goods and Services Tax Rules, 2017 was valid, and whether the assessments were liable to be set aside and remanded.

Analysis: The assessment records did not show issuance of notice in Form GST DRC-01A. The unamended Rule 142(1A) made prior notice mandatory for the relevant assessment period, and the subsequent amendment dated 15.10.2020, which made the requirement directory, did not apply to the period in question. The absence of the prescribed notice therefore went to the root of the assessment proceedings.

Conclusion: The assessment orders were invalid for want of prior notice under Rule 142(1A), and the matters were remanded to the assessing authorities to recommence proceedings after issuing the notice and affording an opportunity of hearing.

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