2026 (4) TMI 1648

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....he nature of certiorari for quashing the impugned order dated 15.12.2025 passed by the respondent under section 74 of the UPGST/CGST Act for the F.Y. 2018-19 to 2022-23 (Annexure-1 to the writ petition). II. Issue a suitable writ, order or direction in the nature of certiorari for quashing the impugned notice dated 24.6.2025 was issued alongwith Form GST DRC-01 dated 26.6.2025 issued by the respondent (Annexure-2 to the writ petition)." 3. Submission is, in the show cause notice-DRC-01 in the column meant for specification of demand of penalty proposed to be confirmed, the same was described '0'. 4. However, in the impugned order dated 15.12.2025, the said amount has been specified at Rs. 4,36,18,072/-. 5. In such ....

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.... 2017 read with corresponding provisions of UPGST Act, 2017 and IGST Act, 2017. iii. Penalty on the amount mentioned above at (i) equivalent to ITC so disallowed and demanded, should not be imposed upon them under Section 74 of CGST Act, 2017 read with corresponding provisions of UPGST Act, 2017 and IGST Act, 2017." (emphasis supplied) 7. Also, reference has been made to the provisions of Section 74 (5) read with 74 (8) of the Act. 8. Having heard learned counsel for the parties and perused the record, Section 74 (1) of the Act reads as below: "74. Determination of tax ¹[,pertaining to the period upto Financial Year 2023-24,] not paid or short paid or erroneously refunded or input tax credit wrongly availed o....

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.... days of issue of the notice, all proceedings in respect of the said notice shall be deemed to be concluded." 11. Rule 142 of the Rules CGST, 2017 reads as below: "CHAPTER-XVIII DEMANDS AND RECOVERY ^2[142. Notice and order for demand of amounts payable under the Act (1) The proper officer shall serve, along with the- (a) notice issued under section 52 or section 73 or section 74 3 [or section 74A] or section 76 or section 122 or section 123 or section 124 or section 125 or section 127 or section 129 or section 130, a summary thereof electronically in FORM GST DRC-01, (b) statement under sub-section (3) of section 73 or sub-section (3) of section 74 for sub-section (3) of section 74A1, a summary ....

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..... Hence, the demand may either be confirmed by following that statutory prescription, or not at all. 15. Also, by virtue of and on the own force of Section 74(8) of the Act, opportunity has to be given to the noticee to pay up 25% of the proposed demand of penalty, mentioned in the show cause notice on form DRC- 01. Subject to that payment, the proceedings must drop, without exception. To allow the practice to avail that right, the amount of tax, penalty etc., must be clearly specified in the show cause notice on form DRC-01, as may not allow any ambiguity to arise. 16. Therefore, it appears that there is no warrant to allow the revenue authorities any margin to not specify the amount of tax or penalty or other dues sought to be confi....