Durga Granites Vs Deputy Assistant Commissioner and Others (Andhra Pradesh High Court)
Andhra Pradesh High Court ruled that assessment orders issued without first serving a notice under Rule 142(1)(A) of the CGST Rules, 2017, are invalid. The petitioners, dealers in granite products, challenged their assessment orders on the grounds that the required preliminary notices were not issued before the show-cause notices. The court found that, before an amendment to Rule 142(1)(A) on October 15, 2020, the issuance of such a notice was mandatory. The word “shall” in the rule was later changed to “may,” indicating a shift from a compulsory to a discretionary requirement. However, since the assessments in question occurred before the amendment, the court applied the precedent set in M/s. New Morning Star Travels v. The Deputy Commissioner (ST), Vijayawada, which held that the absence of a preliminary notice renders the assessment invalid.
As a result, the High Court set aside the assessment orders and remanded the cases back to the concerned assessing officers, directing them to issue notices under Rule 142(1)(A) before proceeding with fresh assessments. The ruling clarifies the procedural requirements for tax assessments and emphasizes adherence to due process under the CGST framework.
FULL TEXT OF THE JUDGMENT/ORDER OF ANDHRA PRADESH HIGH COURT
