Andhra Pradesh HC Sets Aside GST Order for Lacking DIN on order

Knight Hawk Security And Allied Services Vs Assistant Commissioner Stii and Others (Andhra Pradesh High Court)

Andhra Pradesh High Court has set aside a GST assessment order issued against Knight Hawk Security and Allied Services for the financial year 2018-19. The petitioner challenged the order, dated 31.01.2024, on multiple grounds, primarily arguing that it lacked a Document Identification Number (DIN). The Government Pleader confirmed the absence of a DIN on the order, making its validity questionable. The court referenced the Supreme Court’s ruling in Pradeep Goyal v. Union of India & Ors, which deemed orders without a DIN as invalid. Additionally, prior judgments from the Andhra Pradesh High Court, including M/s. Cluster Enterprises v. Deputy Assistant Commissioner and Sai Manikanta Electrical Contractors v. Deputy Commissioner, Visakhapatnam, reaffirmed that non-mention of a DIN renders an order void.

Given these precedents and the 2019 CBIC circular mandating the inclusion of a DIN, the court ruled that the impugned order must be set aside. However, the ruling grants liberty to the respondent authorities to conduct a fresh assessment after issuing a valid notice and including a DIN in the order. The period between the initial assessment order and the new one will be excluded from the limitation period. The petitioner retains the right to contest any new show-cause notice, and the Assessing Authority is permitted to raise fresh issues. The court clarified that there would be no cost implications, and all pending miscellaneous applications were closed.

FULL TEXT OF THE JUDGMENT/ORDER OF ANDHRA PRADESH HIGH COURT

The petitioner was served with an assessment order, dated 31.01.2024, passed by the 1^st respondent, under the Goods and Service Tax Act, 2017 [for short “the GST Act”], for the financial year 2018 to 2019. This assessment order of the 1^st respondent has been challenged by the petitioner in this Writ Petition.

2. This assessment order, in Form GST DRC-07, is challenged by the petitioner, on various grounds, including the ground that the said proceedings did not contain a DIN number.

3. Learned Government Pleader for Commercial Tax, on instructions, submits that there is no DIN number on the impugned assessment order.

4. The question of the effect of non-inclusion of DIN number on proceedings, under the G.S.T. Act, came to be considered by the Hon’ble Supreme Court in the case of Pradeep Goyal Vs. Union of India & Ors¹. The Hon’ble Supreme Court, after noticing the provisions of the Act and the circular issued by the Central Board of Indirect Taxes and Customs (herein referred to as “C.B.I.C.”), had held that an order, which does not contain a DIN number would be non-est and invalid.

5. A Division Bench of this Court in the case of M/s. Cluster Enterprises The Deputy Assistant Commissioner (ST)-2, Kadapa ², on the basis of the circular, dated 23.12.2019, bearing No.128/47/2019-GST, issued by the C.B.I.C., had held that non-mention of a DIN number would mitigate against the validity of such proceedings. Another Division Bench of this Court in the case of Sai Manikanta Electrical Contractors Vs. The Deputy Commissioner, Special Circle, Visakhapatnam³, had also held that non-mention of a DIN number would require the order to be set aside.

6. In view of the aforesaid judgments and the circular issued by the C.B.I.C., the non-mention of a DIN number in the order, which was uploaded in the portal, requires the impugned order to be set aside.

7. Accordingly, this Writ Petition is disposed of, setting aside the impugned proceedings, dated 31.01.2024, issued by the 1^st respondent, with a liberty to the 1^st respondent to conduct fresh assessment, after giving notice to the petitioner and assigning a DIN number to the said order. The period from the date of the impugned assessment order, till the date of receipt of this order shall be excluded for the purposes of limitation.

8. Needless to mention, the petitioner is entitled to raise all objections and grounds against the show-cause notice, which has already been issued. It would also be open to the Assessing Authority to raise fresh issues by way of an additional show-cause notice. In the event of any such additional show-cause notice being issued, further time would be given to the petitioner to raise its objections to such additional show-cause notice. The Assessing Authority, would thereafter, pass appropriate orders, after considering the objections raised by the petitioner.

There shall be no order as to costs.

As a sequel, pending miscellaneous applications, if any, shall stand closed.

Notes:

¹ 2022 (63) G.S.T.L. 286 (SC)

² 2024 (88) G.S.T.L. 179 (A.P.)

³ 2024 (88) G.S.T.L. 303 (A.P.)