Think Differently: Document Identification Number (DIN) in CGST/Income Tax: An emerging area of dispute
Background
The CBIC exercised power under section 168 (1) of CGST Act 2017 / section 37 B of the Central Excise Act 1944 that no search authorization, arrest memo , inspection notices and letters issued in the course of enquiry to tax payers on or after 8 November by officers without (DIN) no. duly prominently pasted on the body of such communication vide circular no. 122/41/2019 GST dated 5 November 2019 to bring transparency between department and tax payers. The Circular provides comprehensive guidelines to officers regarding:
- Communication procedure.
- Post facto approvals
- Exception to the rules.
The board specifically stipulated that any violation of the guideline will tender the document as invalid and deemed to be never issued. The facility was given to taxpayers also to verify the genuineness of the communication send on portal. All Chief Commissioners and Commissioners were to ensure that system is being implemented smoothly.
A similar circular was issued under Customs Act, 1962 vide circular no.37 /2019 dated 5 November 2019. These circulars are in line with the earlier circular issued by CBDT No.19/2019 dated 14 August 2019 under section 119 of the Income Tax Act 1961.
All the taxpayers across the country welcomed e governance and digitation steps taken both by IDT/ DT system of the country.
The Present Dispute
The real testimony of implantation of these circulars soon becomes a contention of dispute between taxpayers and department under DT/ IDT both as notices were being issued without generating DIN no. by the officers in no of cases. The notices issued without bearing DIN no. being challenged in various High Courts / Tribunal and before appellate authorities in no of cases as notices technically become null and void.
Status of the issue:
There are following Judgments in the matter which has held that notices issued without bearing no to be null and void but currently stayed In Supreme Court both under IT and CGST.
Under Income tax Act.
In the case of M/s Brandix Mauritius Holdinv vs Dy. C.I.T 2022(11) TMI 34-ITAT …Without going on merits ITAT allowed appeal as the impugned order do not bear DIN no. which is mandatory as per circular dated 14 August 2019. The ITAT order was appealed in Delhi High court by IT department but High Court turned down the appeal vide order dated 20 March 2023 ( 2023(4) TMI579.)
Subsequently, Department filed special writ petition in the Supreme Court against the order of ITAT and High Court. The Hon’ble Supreme Court has stayed the order and issued notice vide order dated 3 January 2024 ( 2024(1) TMI276 SC)
Under CGST Act
in the matter of Novelty Reddy and Reddy Motors Pvt Limited vs Assisitant Commissioner CGST vide order dated 2-7-2025 by Double Bench of Andhra Pradesh High Court quashed the DRC-01 and assessment order issued without generation of DIN no by the assessing authorities. The Hon’ble bench has followed earlier order of the same High Court by Double bench in the matter of M/s Cluster Enterprises and Sai Manikanta Electrical contractors. Interestingly, the order relied upon the Judgment of Hon’ble Supreme court in the matter of Pradeep Goyal vs Union of India in which Hon’ble Supreme Court impressed upon the Karnataka and Kerala states to implement the system of DIN to provide transparency between state and taxpayers under a Public litigation.
However, the above Judgment of High Court has been stayed by Hon’ble Supreme Court vide order dated 13.10.2025 reported in (2025 Taxscan (SC)322)
Analyss and Way forward:
The grey area of the case is that departmental circulars are binding on their officers and not on public is thumb rule. Here, the department has a say that any such notices issued may be turned down as void and null by the higher officers of the issuing officer who is in default in view of para 4 Ns 5 of the circular to be read together. It appears that again that Hon’ble Supreme Court may invoke article 142 of the constitution to render these circulars optional and not mandatory in the interest of Justice.
Further clarification by CBIC.
Further CBIC has also issued clarification vide circular no 249 /06/2025 dated 9.06.2025 on documents which are generated through common portal under section 167 of CGST Act 2017 which bears reference need not to bear DIN to avoid delicacy to cover up damage.
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