DRC-01 ISSUED TWICE FOR SAME SCN

[Vinod jadhav]

Respected Sir/Madam,

I am seekiing your expert opinion regarding the issuance of two DRC-01 forms for the same Show Cause Notice (SCN), which was issued in connection with audit observations.

1. First DRC-01: Issued on 31.05.2024, covering a total liability of ₹1,42,52,000. This DRC-01 pertains solely to the financial year 2021-22, while liabilities for the financial years 2017-18, 2018-19, 2019-20, and 2020-21 were omitted.:

a. Reply has already been submitted against the DRC-01.

2. Second DRC-01: Issued on 28.08.2024, this revised DRC-01 reflects a total liability of ₹3,55,00,000 and covers the financial years 2017-18 through 2021-22

In this situation, Which DRC-01 should be considered for filling a reply because currently two SCN reflect in the GST portal.

Moreover, if the second DRC-01 is to be considered, the extended period for the financial year 2017-18 appears to be time-barred.

Are there any other points I should consider when preparing my reply?

I would appreciate your advice.

AI Summary

Duplicate demand notices: respond to both DRC 01s and contest time barred tax periods while addressing merits.
Both DRC-01s must be adjudicated and a reply should be filed to the second DRC-01; address merits and time bar objections year-wise. Note that a statement of demand issued under Section 73(3) for additional periods is generally expected to be processed as DRC-02 rather than by issuing another DRC-01. Consider raising time bar defences for extended years and weighing payment of undisputed liabilities to limit interest and penalty.