Luxor Hospital & Anr Vs Union of India & Anr (Gujarat High Court)
The Gujarat High Court heard a writ petition challenging a show-cause cum demand notice dated 27.05.2024 issued under Section 74 of the CGST/GGST Act, 2017. The petitioners argued that the notice was invalid as no pre-consultation notice in Form GST DRC-01A was issued as contemplated under Rule 42(1A). It was contended that although issuance of DRC-01A is not mandatory after the amendment effective 15.10.2020, the word “may” should be read as “shall” to give effect to Section 74(5). The Court issued notice returnable on 27.11.2025 and granted ad-interim relief restraining the authorities from passing the final order during pendency of the petition.
FULL TEXT OF THE JUDGMENT/ORDER OF GUJARAT HIGH COURT
1. Heard learned advocate Mr. Abhay Desai for the petitioners and learned Assistant Government Pleader Ms. Nidhi T. Vyas for the respondents.
2. Learned advocate Mr. Abhay Desai submitted that the impugned show-cause cum demand notice dated 27.05.2024 was issued in contrary to the provision of Section 74(5) of the CGST/GGST Act, 2017 (for short “the Act”), as the respondent authorities have not issued any notice in Form GST DRC-01A as contemplated under Rule 42(1A) of the CGST/GGST Rules, 2017.
