Sri Sanjeeva Sai Flour Mill Vs Deputy Assistant Commissioner (Andhra Pradesh High Court)
In the case before the Andhra Pradesh High Court, the petitioner challenged assessments issued under Section 61 of the GST Act, 2017, contending that a preliminary notice under Rule 142(1)(A) had not been issued before the assessment orders. Section 61 allows a proper officer to issue a notice when, after scrutinizing a dealer’s returns, they are not satisfied with the correctness of such returns. Rule 142(1)(A) mandates that a notice must be issued before initiating proceedings under Sections 73(1), 74(1), or 74A(1) of the GST Act. The Assessing Authority argued that Rule 142(1)(A) notices are not required when proceedings are initiated under Section 61.
The Court observed that proceedings under Section 61, if the dealer’s explanation is unsatisfactory, are expected to lead to further proceedings under Sections 65, 66, 67, 73, 74, or 74A. Accordingly, it is appropriate that a Rule 142(1)(A) notice be issued only after the Section 61 scrutiny is completed and the dealer’s response is found insufficient. In the present matter, the Court noted that the Assessing Authority had issued orders under Section 73 immediately after Section 61 notices, without issuing the mandatory notice under Rule 142(1)(A).
