DRC 07 issued without 3 Reminders

[Bhavy Dhawan]

Dear Members,

We were in receipt of a SCN in DRC 01 for FY 2020-21 dated 22.11.2024. First reminder against it was issued with due date 14.01.2025. A reply seeking adjournment/extension of one week was filed on 14.01.2025 itself.

Prior to this no reply was filed by us due to negligence and miscommunications by the consultants. Also, no second and third reminders were issued by the department and direct order in DRC 07 was issued dated 22.02.2025. Also, in the attachment of DRC 07, a statement is mentioned that we have not sought any adjournment, which is not correct.

Is giving three reminders before issuing DRC 07 mandatory under Gst law? Please mention relevant sections, if possible.

Also what can be our course ahead in such a case? Can appeal be filed or is their any other way because pre deposit amount will be 4.6 lacs?

Kindly provide your expert opinions on what can be done in such a case.

Thanks.

AI Summary

Participant Challenges Direct DRC 07 Order Without Three Reminders Under GST, Considers Appeal and Rectification Options A forum participant raised concerns about receiving a direct DRC 07 order without the expected three reminders following a Show Cause Notice (SCN) under GST for the fiscal year 2020-21. They questioned if issuing three reminders is mandatory under GST law and sought advice on possible actions, including filing an appeal due to a pre-deposit requirement of 4.6 lakhs. Responses highlighted that the GST Act requires granting three adjournments for personal hearings, and bypassing this violates natural justice principles. Recommendations included applying for rectification under Section 161 and considering an appeal, especially if proof of seeking adjournment exists.