In W.P. No.28124 of 2022-MAD HC- Madras HC quashes order u/s 74 of GST Act as Authorities did not consider assessee’s reply in Form GST DRC-06 even though same was received by them 
Justice Abdul Quddhose [15-02-2023]

Read Order: M/s.Engineering Aids v. State Tax Officer (Circle), Jurisdiction :Avadi Zone - III And Ors

LE Correspondent

Chennai, March 4, 2023: The Madras High Court has allowed a petition challenging  an order u/s 74 of GST Act, 2017 and remanded the matter back to the respondents for fresh consideration after noting that the Authorities had not considered the assessee’s reply in Form GST DRC-06 even though the same was received by them.

The Writ Petition was filed before the Single-Judge Bench of Justice Abdul Quddhose  challenging the impugned order passed under Section 74 of the Goods and Services Tax Act, 2017 by the respondents on the ground of violation of principles of natural justice.

It was the petitioner’s case that even though they had sent a reply in Form GST DRC-06 to the show cause notice issued by the respondents, in Form GST DRC-01, the same had not been considered in the impugned order of the respondents.

The petitioners had also submitted that only a summary of the order passed under Form GST DRC-07 was served on him and not the detailed order. According to the petitioner, the said detailed order had also not been uploaded in the web portal of the respondents. 

The Bench noted that the Additional Government Pleader appearing for the respondents was unable to inform this Court as to whether the reply was received by the respondents or not. 

The petitioner had also filed Form GST DRC-06, which confirmed that the reply sent by the petitioner was received by the respondents. However, the Bench opined that as seen from the impugned order there was no reference to the reply and the said reply had also not been considered in the impugned order. 

The respondents had also placed before this Court the speaking order, which they claimed was also uploaded in the web portal along with the summary of the order. The same was disputed by the petitioner.

“Since the petitioner has been able to convince this Court that even though they have sent a reply dated 25.02.2022 to the show cause notice sent by the respondents, the same has not been considered by the respondents in the impugned order, dated 05.04.2022, hence, there is no necessity for this Court to adjudicate on the second ground raised by the petitioner viz., non service of the speaking order dated 05.04.2022 on them”, the Bench remarked.

Since, the respondents had not considered the reply even though the same was received by them,the Bench held that the impugned order had to be quashed.