Section 151

[Veeresham Veerabomma]

Greetings of the day!!!

One my clients received notice under Section 151(2) of CGST Act for the year 2017-18. Wherein RTP asked to produce the Tax Invoices, mode payments to the supplier, Bank Account Details, Party Ledgers with detailed narration and ITC ledger. Thereafter he served the Notice in DRC - 01 and subsequently received an order in DRC - 07. Thereafter attachment under DRC 13. I invite the attention of the Experts kindly throw some light on this issue. According to the enactment if any availment of ITC, which is to be proved ineligible, then the officer has to serve the Notice under Section 61 but, in the said scenario notice issued under section 151. Is it correct ? if so, whether we have to prefer an appeal or shoot the WP before court of Law ? Seems the notice and orders are beyond the jurisdiction.

kindly ignore the earlier one and focus on this. Regret for the inconvenience caused.

AI Summary

Power to collect statistics under Section 151 may not authorize investigative ITC enquiries; lack of hearing invites challenge.
A taxpayer was called upon under the power to collect statistics to furnish invoices, payment proofs, bank and ledger details, and ITC records, after which a demand in Form DRC 01, an order in Form DRC 07 and attachment in DRC 13 followed. The core issue is whether a statistics collection notice may validly be used to investigate or found a demand for allegedly ineligible ITC, whether such use exceeds the section's purpose, and whether procedural defects-especially denial of personal hearing-provide grounds for departmental appeal or writ challenge, taking into account the taxpayer's burden to prove ITC entitlement and recent amendments to the provision.