Demand order and Summary of demand order by two different officers

[SHARAD ANADA]

Demand order of CGST Tax amount 22 lakh and SGST tax is 22 lakh for 4 years together where in 1 year demand of tax is than 10 lakh. The said consolidated order is passed by Dy. Commissioner CGST.

Summary of demand order in form DRC-07 for all the years together is issued by superintendent CGST.

Query other than bunching of SCN and demand order

1. Can Superintendent or officer than the officer who have passed Demand order issue summary order in DRC-07 or the officer who have passed the demand order shall issue summary Order

2. Can Superintendent issue summary of demand order where amount of tax in each head is more than 10 lakh (Circular 31)

[Asha Latha]

1. As per Rule 142(5), there is no requirement for uploading DRC-07 by proper officer. The requirement is only for uploading a summary of the SCN in DRC-01. A strict reading of the provision does not require the person who passed the order to upload it.

2. Superintendent cannot issue summary order beyond the monetary limits prescribed under Circular 31. However, if the order is uploaded on directions of his higher officials, the superintendent can upload as discussed in answer to question no.1

[Sadanand Bulbule]

I endorse the reply.

[Padmanathan KV]

When the Order in original has been passed by the Authority who has jurisdiction, what prejudice is caused to the tax payer when summary of demand is issues by a subordinate authority? I dont think the Court will strike down the entire proceedings as illegal because of the procedure followed here.

[Sadanand Bulbule]

I welcome the reply of Sri. Padmanathan.

[KASTURI SETHI]

Higher Authority can use the power of lower authority and lower authority cannot use the power of higher authority. Hence no possibility of any benefit/relief on the ground of jurisdiction.

I also concur with the views of the experts.

AI Summary

Summary order upload may be performed by a subordinate under direction, but monetary limits restrict superintendent authority. Uploading a summary of a demand order need not be done by the officer who passed the original order; a subordinate may upload it if directed by a higher authority. A superintendent cannot independently issue or upload a summary where prescribed monetary thresholds are exceeded; compliance with those limits is required. Procedural irregularity in uploading the summary, without other defect, does not automatically vitiate a validly passed demand order, and higher authorities may direct lower officers to act but lower officers cannot assume higher authority powers on their own.