GST Orders Quashed Because Deposit Made ‘Under Protest’ Was Treated as Voluntary

Deepak Agro Industries Vs State of Himachal Pradesh and others (Himachal Pradesh High Court)

The petitioner approached the Himachal Pradesh High Court seeking quashing of intimation in Form GST DRC-05 dated 19.12.2023, alleging that it was issued without jurisdiction and in violation of principles of natural justice. The dispute arose after the Assistant Commissioner issued a show cause notice in Form GST DRC-01 dated 28.09.2023 for recovery of GST and IGST amounting to ₹18,58,538.

In response, the petitioner filed Form GST DRC-06 on 28.10.2023, requesting time to submit a detailed reply and informing the authority that the demanded tax had been deposited under protest. A written request to this effect was also made. Subsequently, a detailed reply along with supporting documents was filed on 30.11.2023.

However, on 19.12.2023, the Assistant Commissioner issued an order in Form GST DRC-05 stating that since the petitioner had paid the tax, interest, and penalty in accordance with the relevant provisions, the proceedings initiated by the notice stood concluded. The authority treated the deposit as voluntary and dropped the proceedings. The appellate authority, by order dated 22.07.2025, upheld this conclusion, observing that under Section 73(8) of the Act, once payment of tax and interest is made, there is no scope for further adjudication.