JVS Agencies Vs Superintendent Range-III (Madras High Court)
In this case before the Madras High Court, the petitioner challenged an Order-in-Original dated 09.04.2024 passed under Section 73 of the GST enactments for the tax period 2018–2019. The order confirmed the proposal in the Show Cause Notice (DRC-01 dated 28.07.2023) on the ground that the petitioner failed to submit a reply in Form GST DRC-06.
The petitioner contended that although the detailed order was received, the summary of the order in Form GST DRC-07 had not been uploaded on the GST portal as required under Rule 142(5) of the CGST Rules, 2017. The respondent, in its counter affidavit, argued that the order was validly issued with a Document Identification Number (DIN) and communicated electronically via the registered email. It was submitted that any technical difficulty in viewing DRC-07 would not render the order invalid or extinguish the statutory appellate remedy under Section 107 of the CGST Act. The respondent further contended that any procedural irregularity in uploading DRC-07 is curable and does not affect the determination of tax liability, especially where the petitioner failed to respond to the show cause notice.
The Court examined Rule 142(5), which mandates uploading a summary of orders in Form GST DRC-07 specifying tax, interest, and penalty payable. It also noted Rule 142(6), which treats such uploading as a notice for recovery. The Court referred to instructions issued by the Central Board of Indirect Taxes and Customs clarifying that non-issuance of such summaries violates CGST Rules and may adversely impact record-keeping, recovery, and appellate proceedings.
