Amit Traders Thro Amitkumar Arvindbhai Patel Vs Union of India & Ors. (Gujarat High Court)
In the case of Amit Traders Thro Amitkumar Arvindbhai Patel Vs Union of India & Ors., the Gujarat High Court addressed the issuance of pre-consultation notices under the CGST/GGST Act, 2017. The petitioner, represented by advocate Mr. Avinash Poddar, challenged a show-cause cum demand notice issued on February 12, 2024, arguing that it was contrary to Section 74(5) of the Act. The petitioner contended that the authorities did not issue a notice in Form GST DRC-01A, as required by Rule 42(1A) of the CGST/GGST Rules, 2017, prior to issuing the demand notice. While it was acknowledged that the pre-consultation notice in Form DRC-01A was no longer mandatory after an amendment on October 15, 2020, the petitioner argued that the word “may” in the amendment should be interpreted as “shall,” to avoid rendering Section 74(5) of the Act redundant.
The Gujarat High Court, considering these arguments, issued an interim order, allowing the petitioner to continue cooperating with the adjudication process. However, it restrained the respondents from passing a final order until the case is resolved. The court has scheduled the next hearing for October 16, 2024. The ruling clarifies that while the issuance of pre-consultation notices in Form DRC-01A is no longer mandatory post-amendment, the matter still requires judicial scrutiny to interpret the legal intent behind the amendment.
