GST – Jharkhand High Court: Assessment proceedings suffer from serious procedural errors in absence of a proper SCN – Also, summary of Order issued in Form GST DRC-07 does not precede with proper adjudication order, hence summary Order is set aside and directed to issue fresh SCN – Writ petition allowed [Order attached]
Order Date – 31 January 2023
Parties: M/s Solex Energy Limited Vs The State of Jharkhand, The Commissioner of State Tax, Ranchi and The Deputy Commissioner of State Tax
- The Petitioner, M/s Solex Energy Limited, after filing return in Form GSTR 3B for the month of October 2020 noticed that an amount of Rs.39,77,727/ was debited from its electronic credit ledger and Rs.21,060/ was debited from its electronic cash ledger.
- It was found that the said amount has been recovered against the outstanding demand ID which was created vide summary of order in Form GST DRC-07 dated 21.01.2019. But the Petitioner was never in receipt of any notice in relation to DRC-07 dated 21st January 2019.
- Whether the proceeding is in order?
- The divisional bench of Hon’ble High Court held that the assessment proceedings suffer from serious procedural errors in absence of a proper show-cause notice. The summary of order issued in Form GST DRC-07 dated 21st January 2019 does not precede with a proper adjudication order either.
- Relying on the decision of the case of M/s Nkas Services Private Limited and the fact that there are serious discrepancies in the proceedings, the impugned summary of order contained in Form GST DRC-07 was set aside.
- The matter has been remitted to the adjudicating authority to proceed in accordance with law afresh after issuing a proper show cause notice.
- The writ petition is allowed.