TaxTMI 
TaxTMI 
2026 (3) TMI 1675
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.... Form GST DRC 01A dated 17.02.2026 (DIN 20260267VW000000B79A) (Exhibit A); (b) this Hon'ble Court be pleased to issue writ of Prohibition or any other appropriate writ in the nature of Prohibition ordering and directing the Respondents, their successors, subordinates or servants and agents not to take any steps or proceedings in furtherance of or in pursuance of the impugned Intimation of tax ascertained as being payable under Section 74(5) of the CGST Act in Form GST DRC 01A dated 17.02.2026 (DIN 20260267VW000000B79A) pending further verification by the Learned Chartered Accountant Mr. Sagar Shah appointed by the Respondents in pursuance of and in compliance of Order dated 14.03.2024 passed by this Hon'ble Court and without considering and applying the findings of verification report dated 26.04.2024 submitted by the said Chartered Accountant and further report to be submitted of further verification by him; (c) In the alternative to prayers (a) and (b) above, this Hon'ble Court be pleased to issue writ of Mandamus or any other appropriate writ in the nature of Mandamus ordering and directing the Respondents, their successors, subordinates or servants....
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....ITC). It was further alleged in the enquiry that the Petitioner did not pay Goods and Services Tax (GST) on the inter-bank transfers, as the same form part of taxable supplies. iii. The bank accounts of the Petitioner were provisionally attached vide eight orders of the even date dated 27th February 2024 (hereinafter referred to as the "impugned attachment orders") issued in Form GST DRC-22, and the banks were directed that no debit must be allowed to be made by the Petitioner. The Petitioners challenged the aforesaid impugned attachment orders by filing Writ Petition No. 3406 of 2024 in this Court. The prayers of Writ Petition No. 3406 of 2024 reads thus:- "(a) this Hon'ble Court be pleased to issue a Writ of Certiorari or a writ in the nature of Certiorari or any other writ, order or direction under Article 226 of the Constitution of India declaring Section 83 of CGST Act, 2017 as it exists today, as ultra vires of Articles 14, 19 and 21 of the Constitution of India, for being wholly unreasonable, unguided, without any accountability for its misuse and manifestly arbitrary; or in the alternative, this Hon'ble Court may please read down the extent, scope ....
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....cy of Writ Petition No. 3406 of 2024, Respondent No. 2 vide order dated 11th March 2024 continued the provisional attachment of the Petitioner's bank accounts in the interests of protecting Government Revenue. v. The Petitioner therefore amended Writ Petition No. 3406 of 2024, adding a prayer for quashing the order dated 11th March 2024 passed by Respondent No. 2 which reads thus:- "b1. this Hon'ble Court be pleased to issue a Writ of Certiorari or a writ in the nature of Certiorari or any other writ, order or direction under Article 226 of the Constitution of India calling for the records pertaining to the Petitioner's case and after going into the validity and legality thereof to quash and set aside the impugned order dated 11.03.2024 passed by Respondent No. 2 disposing off the representation made by the Petitioner under Rule 159 of the CGST Rules, 2017 and the continuing the provisional attachment of the 37 bank accounts of the Petitioner provisionally attached vide the impugned attachment orders dated 27.02.2024;" vi. This Court by an order dated 14th March 2024 passed in Writ Petition No. 3406 of 2024 directed Respondent No. 2 to appoint an ....
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.... February 2026 in Form DRC-01A was issued to the Petitioner under Section 74(5) of the CGST Act, inter alia raising a demand of Rs.1,35,91,41,680/-, as ascertained for the Financial Years (FY) 2021-2022 to 2023-2024, along with applicable interest and penalty towards GST liability payable by the Petitioner. xiii. The Petitioner filed a preliminary reply/objection dated 24th February 2026 to the impugned intimation dated 17th February 2026 to pay tax in Part B of Form DRC-01A. 5. It is this impugned intimation dated 17th February 2026 that the Petitioner seeks to challenge through the present writ petition. The issue therefore which has fallen for consideration before this court is whether the impugned intimation issued under Section 74(5) of the CGST Act read with Rule 142(1A) of the CGST Rules has been correctly issued to the Petitioner raising a demand of Rs.1,35,91,41,680/. 6. Learned Senior Counsel Mr. Vikram Nankani, has submitted that the issuance of the impugned intimation under Section 74(5) of the CGST Act read with Rule 142(1A) of the CGST Rules to the Petitioner has been issued arbitrarily and without considering the facts of the present case. It is furthe....
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.... raised the demand on the Petitioner. We are therefore of the view that the right course of action in the present proceedings is for the Respondent Department to issue a show cause notice and adjudicate the issue and post which once an order is passed on the show cause notice, the same can be subject matter of challenge in appellate proceedings. 8. Further, Section 107 of the CGST Act provides for Appeals to the Appellate Authority, and we are of the view that this alternative remedy can be availed of by the Petitioner once an order post show cause notice on the impugned intimation is passed by the authorities under the CGST Act. It would be beneficial to reproduce Section 107 of the CGST Act which reads thus:- "107. Appeals to Appellate Authority.- (1) Any person aggrieved by any decision or order passed under this Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act by an adjudicating authority may appeal to such Appellate Authority as may be prescribed within three months from the date on which the said decision or order is communicated to such person. (2) The Commissioner may, on his own motion, or upon request from ....
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....he hearing of the appeal for reasons to be recorded in writing: Provided that no such adjournment shall be granted more than three times to a party during hearing of the appeal. (10) The Appellate Authority may, at the time of hearing of an appeal, allow an appellant to add any ground of appeal not specified in the grounds of appeal, if it is satisfied that the omission of that ground from the grounds of appeal was not wilful or unreasonable. (11) The Appellate Authority shall, after making such further inquiry as may be necessary, pass such order, as it thinks just and proper, confirming, modifying or annulling the decision or order appealed against but shall not refer the case back to the adjudicating authority that passed the said decision or order: Provided that an order enhancing any fee or penalty or fine in lieu of confiscation or confiscating goods of greater value or reducing the amount of refund or input tax credit shall not be passed unless the appellant has been given a reasonable opportunity of showing cause against the proposed order: Provided further that where the Appellate Authority is of the opinion that any tax has not....