Gujarat High Court rejected the writ petition challanging the legal validity of intimation issued in Form GST DRC-01A under section 74(5) of CGST Act.

High Court mentioned that it is just an intimation and It is up to the applicant whether to pay attention to such intimation or not. If the writ applicant deems fit to ignore it, the same may entail the consequence of further show cause notice under Section 74(1) of the Act, 2017. 

Facts of Case

Applicant has challanged legal validity of intimation of tax ascertained as payable issued by respondent under Section 74(5) of the CGST Act.  Applicant has received this intimation in Form GST DRC-01A issued by respondent informing his liability to pay tax, interest and penalty to the tune of Rs. 80,69,313/- 

The impugned communication further states that the failure on the part of the applicant in depositing the requisite amount referred to above may entail a show cause notice under Section 74(1) of the Act, 2017.

Held by High Court

Having gone through the materials on record, we are of the view that a writ application challenging the notice of intimation in the FORM GST DRC-01A issued under Section 74(5) of the Act is not maintainable in law. It is just an intimation. It is up to the writ applicant whether to pay attention to such intimation or not. If the writ applicant deems fit to ignore it, the same may entail the consequence of further show cause notice under Section 74(1) of the Act, 2017.

In any view of the matter, even if a further notice under Section 74(1) of the Act, 2017 is issued, an opportunity of hearing will definitely be given to the writ applicant before his actual liability is determined under the Act, 2017.  

In view of the above, this writ application fails and is hereby rejected.

taxreply.com © 2024. All Rights Reserved