GST – Patna High Court: Providing minimum statutory period of 30 days from issue of DRC-01 is mandatory as per Section 73(8) for making the payment due – Summary ex-parte Order in Form DRC-07 issued before the expiry of 30 days is not valid – Writ petition allowed [Order attached]
Order date – 13 December 2022
- The Petitioner, M/s. Motiprabha Infrated Pvt. Ltd. was issued with demand order DRC 07 under See 73 (1) of the CGST/BGST Act for the FY 2018-2019 imposing GST liability and interest.
- The demand issued in form DRC 07- order dated 24.02.2021 was passed even before the statutory notice period of 30 days as per section 73 (8) by Respondent for the F.Y 2018-19.
- The appeal filed by the petitioner was rejected on the ground of 'Delay/limitation take any coercive action including recovery from bank account and third parties until pendency of the present writ application’. The petitioner has deposited ten percent of disputed tax amount as needed to be paid as pre-deposit before filing appeal.
- Whether demand can be passed before the statutory notice period as per Section 73(8) of the CGST Act?
- The Hon’ble High Court observed that minimum statutory period of 30 days mandated under the provisions of Section 73(8) of CGST/BGST Act, 2017 was not afforded to the petitioner for making payment due and prior to the expiry of 30 days, the assessing officer proceeded to pass the order, ex parte in nature.
- The Court also observed that notice dated 15.02.2021 directed the petitioner to file reply on 21st of February, 2021 which was within the period of 30 days. It is the mandate of law that 30 days’ period has to be afforded to the parties, which was not done in the instant case.
- On this ground alone, the Court quash the notice dated 15.02.2021 as also the order of assessment dated 24.02.2021 with the direction to the assessing officer to issue a fresh notice in the light of the statutory provisions and pass an appropriate order in accordance with law.
- Writ petition allowed.