Prime Steel Industries Pvt Ltd Vs State of H.P
Date: April 2, 2024
Subject Matter
Form GST ASMT-10 must be issued prior to the issuance of show cause notice
Summary
The case involves a ruling by the Himachal Pradesh High Court regarding the issuance of Form GST ASMT-10 notices prior to the issuance of show cause notices. The court found that the authorities failed to comply with the mandatory requirement of issuing ASMT-10 notices before issuing show cause notices, as mandated by Rule 99 of the CGST Rules, 2017. Consequently, the court stayed the proceedings initiated by the respondents based on the notices issued without complying with Rule 99.
FULL TEXT OF THE JUDGMENT/ORDER OF HIMACHAL PRADESH HIGH COURT
1. Fact of the case in brief:
That DRC-01 were issued by Assistant Commissioner State Tax and Excise, Barotiwala, Himachal Pradesh for the F.Y. 2022-23 on 16.02.2024 and on 28.02.2024 for F.Y.2021-22 and it is important to mention that both DRC-01 were issued without serving ASMT – 10 whereas as per the scheme of the act the authorities are under an obligation to issue ASMT-10 prior to the issue of show cause notice but in the present case the authorities have not followed the basic provisions of the act.
The Hon’ble High Court of Himachal Pradesh on 03.04.2024 stayed the proceedings initiated by the respondents vide notice dated 16.02.2024 and 28.02.2024. Text of the order is as under:
CWP No.2785 of 2024 & CMP No.4311 of 2024 Notice.
Mr. Sushant Keprate, learned Additional Advocate General, accepts service of notice on behalf of the respondents.
Learned counsel for the petitioner contends that the 2nd respondent had issued show cause notice (Annexures P-1 & P-2) under form GST DRC-01 without serving notice under Rule 99 in form GST ASMT-10. He also placed reliance on the judgment of the Gauhati High Court in M/s Pepsico India Holdings Pvt. Ltd. vs. Union of India, WP(C)/6960/2023 dt. 13.12.2023, wherein interim order has been issued in similar circumstances.
The Additional Advocate General admits that prior to issuance of the form GST DRC-01 dt. 16.02.2024 and 28.02.2024 to the petitioner, the 2nd respondent had not issued a notice form GST ASMT-10.
A reading of Rule 99 of CGST Rules, 2017, makes it clear that the issuance of notice to the petitioner in form GST ASMT-10, prior to issuance of a show cause notice, is mandatory. Therefore, there shall be stay of all further proceedings pursuant to Annexures P-1 & P-2.
List on 12th June, 2024.