Elesh Agrawal Vs Union of India And 2 Others (Allahabad High Court)
The Allahabad High Court addressed a petition filed by Elesh Agrawal challenging a Demand-Cum-Show Cause Notice (SCN) issued under the Goods and Services Tax (GST) Act, 2017. The core of the challenge centered on two technical issues: the use of an incorrect form for the SCN and the alleged failure to serve the notice through the electronic GST portal.
The Impugned Notice and Petitioner’s Grievances
The petitioner challenged Demand-Cum-Notice to Show Cause No. 59/2022-23, dated February 24, 2023, which proposed three separate penalties totaling over Rs. 10.50 crore under various sections, including Section 142(1A) and Section 142(3)(a) and (d) of the Central GST Act, 2017.
The petitioner raised two primary grievances:
- Premature Issuance on Wrong Form: The notice was issued on Form GST DRC-01 (the formal Show Cause Notice) and not on Form GST DRC-01A (the preliminary communication intimating tax liability). The petitioner argued that by virtue of Section 74(5) of the Act, the revenue authorities were first obligated to allow the assessee an opportunity to pay the alleged defaulted amount along with penalties on a self-assessed basis. The issuance of DRC-01 effectively denied this preliminary opportunity, rendering the notice premature.
- Failure of Electronic Service: The petitioner contended that the demand-cum-notice was not uploaded on the GST portal, and no notice was served through electronic means, making the proceedings premature.
Judicial Precedents and Petitioner’s Reliance
