No Reason to Believe Improper Service of GST DRC-01 Notice: Kerala HC directs Assessee to file Statutory Appeal against GST Adjudication Notice [Read Order]

In a recent ruling, the Kerala High Court Justice Dinesh Kumar Singh directed M/S. N.T.K. Jewellers to file a statutory appeal against the Goods and Services Tax (GST) Adjudication Notice after finding no reason to believe in the improper service of GST DRC-01 notice. The petitioner, M/S. N.T.K. Jewellers challenged the order issued by the Deputy Commissioner of State Tax under Section 73 of the Central Goods and Services Tax/State Goods and Services Tax Act, 2017.

The tax liability assessed against the petitioner amounted to Rs. 6.36 Lakhs. Rather than opting for the conventional route of filing a statutory appeal, the petitioner cited a violation of the principles of natural justice as the grounds for approaching the High Court, the bench noted.

The Kerala High Court Bench of Justice Dinesh Kumar Singh observed that the petitioner had been duly served a show-cause notice (Ext.P1) on July 30, 2020, to which the petitioner responded through GST ASMT-10 (Ext.P2). Subsequently, a notice under Section 73(1) of the Kerala Goods and Services Tax Act, 2017, was issued. However, the petitioner failed to file a reply to the notice in DRC-01. Justice Dinesh Kumar Singh emphasised that the assessment order clearly outlined the sequence of events, including the petitioner’s non-compliance after the intimation in DRC-01.

The court expressed confidence in the authority’s correct recording of facts and found no reason to believe in the improper service of notice, as contended by the petitioner. Concluding the judgement, Justice Dinesh Kumar Singh disposed of the writ petition, granting the petitioner the liberty to file an appeal against the order issued by the Deputy Commissioner of State Tax. The court also noted the extension of the appeal limitation until January 31, 2024, as per Circular No.53/2023. To Read the full text of the Order CLICK HERE

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