GST demand based on no reply to DRC-01 notice remitted for fresh merits hearing, 25% deposit required, attachment lifted Where a GST demand was confirmed on the basis that no reply was filed to the DRC-01 show cause notice, the HC held that, consistent with its approach in ...
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
GST demand based on no reply to DRC-01 notice remitted for fresh merits hearing, 25% deposit required, attachment lifted
Where a GST demand was confirmed on the basis that no reply was filed to the DRC-01 show cause notice, the HC held that, consistent with its approach in similar cases, the adjudication required reconsideration on merits after affording an effective opportunity. The impugned order was treated as an addendum to the show cause notice, and the matter was remitted to the tax authority to pass a fresh order on merits, conditional upon the assessee depositing 25% of the disputed tax within 30 days (reduced to 15% if a prior 10% deposit is already adjusted) and filing a reply with supporting documents; upon compliance, the bank account attachment stood vacated and a final order was to be passed expeditiously.
The writ petition challenged an order dated 19.02.2025 confirming the demand proposed in GST DRC-01 show cause notice dated 25.11.2024 for tax period 2020-2021, which was confirmed "in the absence of any reply" from the petitioner. Although the petitioner claimed to have deposited 10% of the disputed tax on 05.11.2025, the respondent could not confirm whether that payment related to the impugned demand. The Court noted the statutory appellate remedy under Section 107 of the GST enactments, 2017 had become time-barred, as the writ was filed only on 08.12.2025. Nonetheless, following the consistent approach in similar cases, the matter was remitted to the respondent to pass fresh orders on merits, conditioned on the petitioner depositing 25% of the disputed tax within 30 days; if the earlier 10% payment is verified as set-off against the impugned liability, only 15% more is required. The petitioner must file a reply with documents, treating the impugned order "as an addendum" to the show cause notice. On compliance, a final order should be passed preferably within three months, and bank attachment stands automatically vacated, subject to the ordered deposit and no other arrears; non-compliance permits recovery proceedings.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
AI OCR ✕
of 
TaxTMI 
TaxTMI 
