Tvl. P.S.K. Traders Vs State Tax Officer (Madras High Court)
The Madras High Court, in the case of Tvl. P.S.K. Traders Vs State Tax Officer, addressed a writ petition challenging a summary demand order passed under the Goods and Services Tax (GST) laws. The central issue was a breach of mandatory procedure by the taxing authority.
Procedural Lapse
The petitioner contended that the respondent, the State Tax Officer, issued a preliminary notice in Form DRC-01A on December 5, 2024. However, the respondent proceeded to issue the summary order in Form DRC-07 on February 14, 2025, without first issuing the mandatory show-cause notice in Form DRC-01.
The petitioner’s counsel argued that proceeding directly to the final demand order without the critical intermediary notice (DRC-01) violated established legal procedure and requested the court to set aside the final order and allow the petitioner an opportunity to file a reply by treating the initial DRC-01A notice as the show-cause notice.
Court’s Finding and Holding
The Court noted that the omission of the Form DRC-01 notice before issuing the final summary demand order in Form DRC-07 was evident from the records. The bench emphasized that the issuance of the notice in Form DRC-01 is a mandatory prerequisite before passing the final demand order.
