Filing an Appeal After Issuance of Order in DRC-07 Following Missed SCN Reply

[Deepanshu Garg]

Dear All,

If a reply to a show cause notice (SCN) issued under Section 73 was not filed, and after a reminder from the department, an order in DRC-07 has been issued, is it still possible to file an appeal with the Commissioner (Appeals)? What are the options and considerations in such a scenario?

Thank you for your insights.

[Veenaa Venkatesh]

Yes sir. Appeal can be filed within the prescribed period of 3 months (additional 1 month seeking condonation) subject to payment of pre-deposit as per Section 107(6).

[KASTURI SETHI]

Order is appealable. 

You are required to explain your genuine reasons for not filing reply to the SCN with documentary evidence before the Appellate Authority. The appeal cannot be rejected on the basis of non-filing reply to the SCN. You have full opportunity to defend your case before the Appellate Authority on merits.

[Shilpi Jain]

What are the reasons for not replying? 

If you did not have any information of the SCN for valid reasons then you can challenge the order itself in a Writ. Pls look at your factual matrix to see what could be the next steps.

Since filling an appeal requires 10% pre-deposit to be made.

[Pradeep Reddy Unnathi Partners]

I agree with views of Shilpi madam

[KALLESHAMURTHY MURTHY K.N.]

Dear Sir/Madam,

I do agree with Sri Kasturi Sethi Sir [at Sl. No. (2)]. 

The issue is very clear that the SCN was unanswered even after the reminder. However, the taxpayer can get the remedy for any adverse order and undue demand at the first appeal authority level by producing relevant documents. 

AI Summary

Appeal rights after DRC-07: filing remains possible despite missed SCN reply, subject to pre-deposit and condonation requirements. An appeal from a DRC-07 order issued after non reply to a show cause notice under Section 73 is permissible to the Commissioner (Appeals) within the prescribed period, subject to condonation rules and payment of the statutory pre deposit. The appeal should be supported by genuine reasons and documentary evidence explaining the failure to reply; non filing of a reply alone is not a ground for summary rejection and the appellant may seek first appeal adjudication or, in exceptional cases, constitutional relief depending on the facts.