GST – Madras High Court: ASMT 10 is mandatory before proceeding to issue GST DRC-01, failure to issue the same in respect of the discrepancies forming the subject matter in GST DRC-01 would vitiate the entire proceedings – Writ petition allowed [Order attached]
Order date – 27 September 2022
- The Petitioner, M/s.Vadivel Pyrotech Private Limited, is dealing in Fireworks registered under the TNGST Act, 2017. The petitioner had filed the GST returns under the TNGST Act periodically discharging appropriate taxes, while availing the Input Tax Credit in terms of Section 16 of the TNGST Act.
- On scrutiny of the GST returns by the revenue in terms of Section 61 of the TNGST Act and a notice in Form ASMT 10 dated 22.12.2021 was issued pointing out certain discrepancies between GSTR3B, GSTR 1 and GSTR 2A returns filed by the petitioner for the year 2018-19 calling upon the petitioner to pay taxes along with interest.
- The defects/discrepancy which was pointed out in the Form ASMT 10 issued on 22.12.2021. The petitioner submits that the entire proceeding has been made behind their back and they were completely unaware of either the summary of the Notice in GST DRC-01 or the Order in GST DRC-07 until being informed by the Respondent.
- Whether the notice in Form ASMT 10 is issued in violation of the procedure contemplated under Rule 99 of the Tamil Nadu Goods and Service Tax Rules or not?
- The Hon’ble High Court observed Section 61, 74 and Rule 100(2) of the Tamil Nadu Goods and Service Tax Act and Rules and it was found that Form ASMT 10 which ought to have been issued in respect of aspects forming the subject matter of the proceedings in GST DRC-01 culminating in GST DRC-07 in view of the fact that the proceedings are pursuant to scrutiny of assessments, the learned Additional Government Pleader submitted that Form ASMT 10 was not issued other than the one issued on 22.12.2021, which does not cover the issues raised in the impugned proceeding.
- The learned Additional Government Pleader sought leave to issue notice in Form ASMT 10 in respect of the aspects forming the subject matter of the impugned proceedings and thereafter to assess in compliance with the procedure contemplated under the Act including Section 61.
- Respondent has directed to issue appropriate Form (Form ASMT 10) and after affording a reasonable opportunity to the petitioner in the manner contemplated under the Act proceed further in accordance with law. The petitioner shall also co-operate in the proceedings.
- Hence the writ petition is disposed of.