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

Right to personal hearing may invalidate adjudication issued without required adjournments; seek rectification or challenge on appeal.
Adjudication issued without granting repeated personal hearing opportunities may breach principles of natural justice; one view advises seeking rectification of the order as an apparent error to preserve pre-deposit obligations and appeal rights, while an alternative view stresses that adjournments arise only if sufficient cause is shown by the person charged, so the ability to challenge depends on proof of a requested adjournment and demonstration of prejudice.