Order date: 02 January,2023

Parties: M/s Skyline Automation Industries vs State of U.P. and another

Facts

• The petitioner, M/s Skyline Automation Industries challenge the petition order dated 10.11.2022 wherein it was contended that in the present case the notice in Part A of FORM GST DRC-01A have not been issued but before passing any order under Section 74 of the Act, a show cause notice in Part A of FORM GST DRC-01A is required to be issued.
• The argument is raised on the terms of the provisions of Rule 142(1A) of the Central Goods and Service Tax Rules, 2017 as existing at the time of initiation of the proceedings against the petitioner before it was amended on October 15, 2020.

Issue 

•  Whether Order is issued as per the procedure prescribed in the GST law?

Order 

• The Court held that the notice in Part A of FORM GST DRC-01A is required to be issued as per the GST law but was not issued in the present case, which provided for communication of details of any tax, interest and penalties as ascertained by the officer.
• Any subsequent reminder will not cure inherent defect in proceedings initiated against the petitioner. As the initiation of proceedings itself are bad, the order passed consequent thereto will also fall.
• The impugned notice dated November 10, 2022 is quashed. However, with liberty to the respondents to initiate fresh proceedings against the petitioner in accordance with law.
• Hence the writ petition is allowed.