Adi Lakshmi Cement And Steel Traders Vs Superintendent of Central Tax (Andhra Pradesh High Court)
The Andhra Pradesh High Court addressed two writ petitions challenging assessment orders dated 28 February 2025 issued against the petitioners. The primary contention raised was that these assessment orders were not preceded by notices in Form GST DRC-01A, which, under Rule 142(1A) of the GST Rules, is mandatory before initiating any assessment proceedings.
The respondents initially claimed that non-issuance of such notices would not invalidate the assessment, arguing that Rule 142(1A) had been amended on 15 October 2020 to make the notice requirement directory rather than mandatory. However, the Court noted that the assessments under challenge pertained to a period prior to the amendment. Consequently, the original un-amended Rule 142(1A) applied, requiring mandatory issuance of the notice. Since no Form DRC-01A notice was issued in these cases, the assessment orders were rendered invalid.
The Court referred to its earlier decision in New Morning State Travels vs. The Deputy Commissioner (ST) and Ors., where it was held that an assessment order passed without a prior notice under Rule 142(1A) is invalid. The Standing Counsel’s contention that the amendment made the notice requirement directory was rejected as it was inapplicable to the pre-amendment period.
