Amit Traders Vs Union of India & Ors
Date: September 19, 2024
Court: High Court
Bench: Gujarat
Type: Special Civil Application
Subject Matter
Interim relief granted for non-issuance of Pre-Consultation Notice in DRC-01A
Summary
The case involves a petition where the petitioner who challenged a show-cause cum demand notice issued on February 12, 2024. The petitioner contends that this notice was issued contrary to the provisions of Section 74(5) of the CGST/GGST Act, 2017, arguing that the respondent authorities failed to issue a pre-consultation notice in the required Form GST DRC-01A as stipulated in Rule 142(1A). - The petitioner claims that, despite amendments effective from October 15, 2020, which made the pre-consultation notice optional (“may”), the term should be interpreted as mandatory (“shall”) to maintain the efficacy of Section 74(5). - The court has scheduled a return notice for October 16, 2024, and granted an ad-interim relief allowing the petitioner to continue cooperating in the adjudication process, but it has instructed the respondents not to issue a final order while the petition is pending. Direct service through email is permitted for communication regarding the case.
FULL TEXT OF THE JUDGMENT/ORDER OF GUJARAT HIGH COURT
1. Heard learned advocate Mr. Avinash Poddar for the petitioner and learned AGP Ms. Hetal G. Patel for the respondents.
2. Learned advocate Mr. Avinash Poddar submitted that the impugned show-cause cum demand notice dated 12.02.2024 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.
3. It was submitted that though the requirement of issuance of the pre-consultation notice in Form-DRC-01A is not compulsory as per the amendment brought on the statute with effect from 15th October, 2020, the word ”may” is required to be read as “shall” otherwise, Subsection (5) of Section 74 of the Act would become redundant.
4. Considering the above submissions, issue Notice returnable on 16th October, 2024. By way of ad-interim relief, the petitioners shall continue to cooperate in the adjudication process of the impugned show-cause notice, however the respondents shall not pass the final order during the pendency of this petition. Direct service through e-mail is permitted.