Case Law Details
Edifice (Bharat) Private Limited Vs Assistant Commissioner (ST) (Andhra Pradesh High Court)
Summary: A recent judgment by the Andhra Pradesh High Court in the case of Edifice (Bharat) Private Limited vs. Assistant Commissioner (ST), Proddatur-II Circle has again emphasized on the importance of mentioning the Document Identification Number (DIN) in all GST-related orders. The AP court set aside an assessment order due to the absence of a DIN in the order by the officer by virtue of the previous legal precedents (Previous similar cases having same issues) and government circulars. This article explains the case, its implications, and key takeaways for businesses and tax consultants.
Facts, ground and Decision
The petitioner i.e. Edifice (Bharat) Private Limited, received a tax assessment order dated 17-10-2024 under Section 74(9) of the GST Act without any DIN number on the assessment order for the financial years 2022-23 to 2023-24.
The company challenged the order before the Andhra Pradesh High Court on various ground including absence of the DIN, arguing that the order was invalid because it did not contain a Document Identification Number (DIN) which is very necessary and important for any assessment order. Also, the CBIC had already issued a circular on this issue.
DIN is a unique tracking number that ensures authenticity and transparency in government-issued tax notices and orders. The Central Board of Indirect Taxes and Customs (CBIC) issued Circular No. 128/47/2019-GST, dated 23-12-2019, mandating that all communications from tax authorities must include a DIN.
The High Court referred to the Supreme Court judgment in Pradeep Goyal vs. Union of India (Link for the same is given below), which ruled that a GST order without a DIN is invalid.
The court also cited earlier cases of Andhra Pradesh High Court decisions, including M/s. Cluster Enterprises vs. Deputy Assistant Commissioner (ST)-2, Kadapa and another case of Sai Manikanta Electrical Contractors vs. Deputy Commissioner, Special Circle, Visakhapatnam.
The high court held that an assessment order without mentioning DIN is non-existent and unenforceable ultimately invalid, accordingly, the assessment order dated 17-10-2024 was set aside by the court in favour of Petitioner: Edifice (Bharat) Private Limited. The High court also asked the tax department to reissue a fresh order, ensuring compliance with DIN requirements and also ruled that the limitation period for reassessment will exclude the period from the original order date to the High Court’s ruling.
Suggestion
Any tax order, notice, or communication without a DIN is legally invalid and can be challenged in court and accordingly, all taxpayers should always check for DIN on any official communication from GST authorities before responding. DIN Validity can be checked through CBIC Portal.
The courts have consistently ruled that the absence and non-communication of DIN will make tax orders or notices non-existent and unenforceable. CBIC Circulars are Legally Binding and The CBIC Circular No. 128/47/2019-GST (Link is given below for ready reference) mandates DIN communication in each and every notices & order, and various courts including supreme court have upheld its authority.
If your case is similar to the above case and also relates to state of Andhra Pradesh then above two cases are best fit for your case to quote, otherwise you can quote those cases which were already ruled in favour of the Assessee if related to different states. I have seen many cases of Andhra Pradesh who has quoted the same cases listed above and got their assessment order dropped by the High Court.
Link for ready reference.
1. Circular: https://taxguru.in/goods-and-service-tax/cbic-issues-format-summons-arrest-memo-search-authorisation.html
2. Pradeep Goyal vs. Union of India: https://taxguru.in/goods-and-service-tax/sc-directs-gst-council-implement-document-identification-no-din.html
3. M/s. Cluster Enterprises vs. Deputy Assistant Commissioner: https://taxguru.in/goods-and-service-tax/notice-proposing-confiscation-goods-specific-reason-untenable-andhra-pradesh-hc.html
FULL TEXT OF THE JUDGMENT/ORDER OF ANDHRA PRADESH HIGH COURT
The petitioner was served by an assessment order, dated 17.10.2024, passed by the 1st respondent, under the Goods and Service Tax Act, 2017 [for short “the GST Act”] for the period 2022-23 to 2023-24. This order has been challenged by the petitioner.
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 & Ors’. 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 Vs. 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. this Writ Petition is disposed of setting aside the impugned proceedings, dated 17-10-2024 issued by the 1st respondent, with liberty to the 1st respondent to conduct fresh assessment, after giving notice and by assigning a DIN number to the said order. The period from the date of the impugned assessment orders, till the date of receipt of this Order shall be excluded for the purposes of limitation. There shall be no order as to costs.
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.)
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